MSP Steel & Power Limited has informed the Exchange about Preferential issue
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MSP Steel & Power has allotted 2,80,00,000 (2.8 crore) convertible warrants to M.A Hire Purchase Private Limited, part of the promoter group, at a price of Rs. 35 per warrant (Rs. 10 face value + Rs. 25 premium). The total potential value of the issue is approximately Rs. 98 crore. The promoter group entity has already paid 25% upfront (Rs. 8.75 per warrant, totalling Rs. 24.5 crore). The balance 75% (Rs. 26.25 per warrant) will need to be paid within the stipulated time to convert each warrant into one equity share. The allotment follows shareholder approval at an EGM on December 12, 2025, and in-principle approval from NSE and BSE on February 27, 2026. The board approved this on March 14, 2026. There is no change in paid-up share capital at this stage since only warrants (not shares) have been issued.
The promoter group is increasing its commitment and potential stake in the company, which signals confidence in the business. The Rs. 24.5 crore upfront inflow gives the company immediate funds, but full Rs. 98 crore benefit is contingent on warrant conversion. Existing shareholders may see modest dilution only if the warrants eventually convert into equity.