Intimation under Regulation 30 of the SEBI (LODR) Regulations 2015- Non-exercise of option to convert of warrants
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Kay Power and Paper had allotted 2.59 crore convertible warrants to 48 allottees in April 2024 on a preferential basis at Rs. 30.10 per warrant, with 25% upfront subscription already collected (Rs. 19.49 crore). Within the 18-month conversion window ending October 15, 2025, two warrant holders — Chandra Trading and Investment Private Limited (13.5 lakh warrants) and Shyam Mohan Gupta (2.5 lakh warrants) — did not exercise their conversion option for a combined 16 lakh warrants. As per SEBI ICDR Regulations, the 25% amount already paid on these 16 lakh warrants (approximately Rs. 1.20 crore) now stands forfeited to the company.
Mildly positive for existing shareholders: the forfeiture of 16 lakh warrants prevents that much potential equity dilution, and the company retains roughly Rs. 1.20 crore of non-refundable subscription money. The impact is modest since unconverted warrants represent only about 6% of the total warrants originally issued.