Announced Sat, 17 May · 19:49 IST

OUTCOME

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KOTIC · price

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

The Board of Directors of Kothari Industrial Corporation, at its meeting on May 17, 2025, approved the 'KICL Employee Stock Option Scheme 2025' covering up to 46,86,000 equity shares of Rs. 5 each, subject to shareholder approval. The Board also approved a preferential issue of 1,36,37,600 equity shares at Rs. 72.60 per share (including a premium of Rs. 67.60), aggregating to approximately Rs. 99 crores, to promoters and non-promoters. An Extraordinary General Meeting has been scheduled for June 13, 2025 to seek shareholder approval for these proposals. Promoter Rafiq Ahmed's holding is set to increase from 44.37% to 45.09% post-allotment.

Likely market impact

The preferential issue will dilute existing shareholders by roughly 6-7%, while the ESOP scheme may cause further dilution over time. However, the Rs. 99 crore capital raise could strengthen the company's balance sheet for future growth, and the promoter increasing their stake signals confidence in the business.