Outcome of meeting of the Preferential Issue Committee of the Board of Directors of Kesar India Limited ("the Company") in accordance with the provisions of regulation 30 of the Securities ....
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Kesar India Limited's Preferential Issue Committee approved the allotment of 64,76,559 Fully Convertible Warrants at Rs. 350 per warrant, raising an aggregate of about Rs. 226.68 crore from promoter, promoter group, and non-promoter investors. Additionally, 12,57,142 warrants (worth about Rs. 44 crore) were allotted to the promoter group against conversion of outstanding unsecured loans, with the balance 75% to be paid in cash on eventual conversion. The committee also approved allotment of 86,856 equity shares at Rs. 350 each, raising about Rs. 3.04 crore from non-promoter allottees. After these allotments, the company's paid-up equity share capital rises to Rs. 24.80 crore, comprising 2,47,99,656 shares of Rs. 10 each. The total preferential issue size is roughly Rs. 273.72 crore (warrants plus shares), with promoter Gopal Gupta being the largest single allottee.
The preferential allotment expands the shareholder base and brings in fresh capital, while also converting promoter family loans into equity-linked instruments, strengthening the balance sheet. Existing shareholders may see some dilution if and when the warrants are converted, since warrants are priced at Rs. 350 against a Rs. 10 face value.