Maral Overseas Limited has informed the Exchange regarding Allotment of 10,00,000 9.25% Redeemable Non- Convertible Cumulative Preference shares of Rs. 100/- each on private placement basis.
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Maral Overseas Limited has allotted 10,00,000 Redeemable Non-Convertible Cumulative Preference Shares (RNCPS) at Rs. 100 each, raising Rs. 10 crore in the first tranche (out of a total Rs. 30 crore approved). The shares carry a 9.25% per annum cumulative dividend, are unsecured, non-convertible into equity, and will not be listed on stock exchanges. The allottee is Diplomat Leasing and Finance Private Limited, a promoter group entity. The shares have a 10-year tenure with an option for early redemption at face value with majority holder consent. Since these are preference shares, there is no change in the company's paid-up equity share capital.
The company has raised Rs. 10 crore from its promoter group through a relatively low-cost (9.25%) preference share instrument that doesn't dilute equity or add listed securities. For shareholders, this means the promoter is committing fresh capital to the company, which is a mildly positive signal of promoter confidence, though it also adds a fixed cumulative dividend obligation of about Rs. 92.5 lakh per year on this tranche.