Kshitij Polyline Limited has informed the Exchange regarding allotment of 23719398 securities pursuant to Preferential Issue at its meeting held on August 27, 2025
KSHITIJPOL · price
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Kshitij Polyline has allotted 2,37,19,398 fully paid-up equity shares of face value ₹2 each at an issue price of ₹5 per share — a premium of ₹3 over face value. This is the first tranche (Allotment-1) of a larger preferential issue of 6,52,44,398 shares approved by shareholders on July 23, 2025. The total consideration is about ₹9.49 crore, comprising ₹2.80 crore in cash and ₹6.69 crore through conversion of existing unsecured loans into equity. There are 5 allottees, all non-promoter individuals and body corporates, with Potential Electrical & Electronics Pvt Ltd emerging as the largest recipient at 1.37 crore shares (~8.87% post-issue holding) entirely through loan conversion. Paid-up share capital has increased from ₹17.80 crore to ₹22.54 crore.
Existing shareholders face equity dilution as 2.37 crore new shares are issued, but the ₹6.69 crore debt-to-equity swap strengthens the balance sheet by reducing liabilities. The issue price at ₹5 against a ₹2 face value indicates the company raised capital at a healthy premium, though stock price reaction may be negative due to dilution and the deeply discounted nature of the preferential price versus likely market price.