Announced Tue, 20 May · 18:11 IST

Outcome of Board Meeting

Fund Raising View source PDF

Price

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

The Board approved a preferential issue of up to 18 crore equity shares (face value Re. 1) to non-promoter investors at a minimum price of Rs. 1.08 per share, potentially raising around Rs. 19.4 crore to augment long-term financial resources. The issue is spread across 9 allottees, including Apalaya Fashion, M Entertainment, Franklin Leasing and Finance, Great Fin Leasing and Credit, and individuals like Vandana Agarwal and Vishnu Kumar Agarwal. Post-issue holdings range from 0.94% to 3.78% per allottee, indicating the company currently has roughly 80 crore shares outstanding and this would cause about 18% dilution. The Board also approved the re-appointment of Mr. Mahadevan Ramanathan Kavassery as Whole-Time Director and CFO (originally appointed April 2016), and a postal ballot notice to seek shareholder approval for these items.

Likely market impact

Existing shareholders face significant dilution (~18%) from this preferential allotment at a price barely above face value, which suggests the stock is trading at very low levels. The fund raise size is small (around Rs. 19 crore), but the dilution is steep; shareholders should monitor the postal ballot outcome and the final issue price once determined under ICDR regulations.