Postal Ballot Notice dated March 6, 2026
Awaiting price reaction for this filing.
Seshachal Technologies has sent a Postal Ballot Notice dated March 6, 2026, seeking shareholder approval for a Special Resolution to issue up to 1,13,63,637 fully convertible warrants at Rs. 22 per warrant to 21 allottees in the 'Non-Promoter, Public Category', for an aggregate of up to Rs. 25 crore. Each warrant (face value Rs. 10) is convertible into one equity share within 18 months, with 25% payable upfront and 75% on conversion. The proceeds are earmarked for working capital (Rs. 19 crore), general corporate purposes (Rs. 5.65 crore), and issue expenses (Rs. 0.35 crore), to be utilized by March 2028. The issue price of Rs. 22 is higher than the independent registered valuer's fair value of Rs. 20, and no promoter, director, or KMP is subscribing. E-voting runs from March 7, 2026 to April 5, 2026, with the cut-off date being February 27, 2026.
If approved, the preferential issue will cause heavy equity dilution — promoter holding will collapse from 33.87% to just 1.95% on full conversion, while public non-promoter holding will swell. The Rs. 25 crore inflow may support working capital, but the sharp promoter dilution and large issuance relative to the company's size could be a negative signal for existing retail shareholders.