Parag Milk Foods Limited has informed the exchange about clarification on NSE queries in connection with issuance of convertible share warrants on preferential basis
PARAGMILK · price
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Awaiting price reaction for this filing.
Parag Milk Foods has responded to additional queries from NSE regarding its plan to issue 90,00,000 (90 lakh) convertible share warrants on a preferential basis, each convertible into one equity share of Rs. 10. The warrants were approved at an EGM held on May 3, 2025, and the company is now seeking in-principle approval from the exchange. As per the shareholding pattern, 60 lakh warrants are proposed to be allotted to the promoter group (raising their stake from 42.61% to 44.29%), while 30 lakh warrants go to non-promoters including body corporates (14 lakh) and resident individuals holding shares worth over Rs. 2 lakh (16 lakh). Total equity will expand from 11.94 crore shares to 12.84 crore shares assuming full conversion. The company also confirmed that none of its directors, promoters, or the company itself are classified as wilful defaulters or fraudulent borrowers.
This is a clarification filing, not a new development. If approved and fully converted, the preferential warrant issue would dilute existing non-promoter shareholders from 57.25% to about 55.57%, while promoters strengthen their holding. Watch for the issue price and allotment identity to gauge whether this is value-accretive or dilutive for retail holders.