PAKKA LIMITED has informed the Exchange about Lapse of Warrants allotted on a preferential basis and Forfeiture of Upfront Amount
PAKKA · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Pakka Limited informed the exchanges that 36,00,000 fully convertible warrants allotted on a preferential basis on October 14, 2024 at Rs.272 per warrant have lapsed as no holder applied to convert them within the 18-month deadline (which ended April 13, 2026). The warrants were held by Carelian Bharat Amritkaal Fund (20.5 lakh warrants) and Carnelian Asset Management LLP (15.5 lakh warrants). Per SEBI rules, the 25% upfront amount of Rs.24.48 crore paid at the time of allotment has been forfeited by the company and retained. There is no change in the paid-up equity share capital as a result of this lapse. Effectively, the company gets to keep Rs.24.48 crore but loses out on the remaining Rs.73.44 crore (~75%) that was expected from conversion.
Negative signal for shareholders — the company was unable to get warrant holders to put in the remaining ~Rs.73.44 crore of planned capital, suggesting either weak investor confidence or unfavourable share price conditions relative to the Rs.272 conversion price. However, the Rs.24.48 crore forfeited is a small windfall, and share count stays unchanged, so dilution is avoided.