Issuance and allotment of upto 2,00,00,000 warrants convertible into equity shares at Rs.24/- per warrants by way of preferential issue to non promoter, public category person aggregating ....
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The board of Mid East Portfolio Management Ltd approved issuing up to 2 crore (2,00,00,000) convertible equity warrants at Rs.24 per warrant to 37 non-promoter, public-category allottees, aggregating up to Rs.48 crore. Each warrant is convertible into one equity share of Rs.10 face value, with 25% payable upfront and the remaining 75% on exercise within 18 months. The issue price of Rs.24 is higher than the floor price determined under SEBI ICDR Regulations. The company also approved increasing its authorized share capital from Rs.10 crore (1 crore shares) to Rs.25.05 crore (2.50 crore shares) to accommodate the potential conversion. Shareholder approval will be sought via postal ballot.
This is a major potential dilution event — if all warrants are converted, the equity base could expand roughly nine-fold, significantly diluting existing shareholders. However, the 25% upfront payment means immediate cash inflow is limited to about Rs.12 crore, with the balance (up to Rs.36 crore) tied to warrant exercise over 18 months. The pricing above the SEBI floor price is marginally reassuring for existing holders.