This is in furtherance to the intimation given by the Company on May 17, 2024 w.r.t. allotment of warrants, each convertible into, or exchangeable for, one equity share of face value of ....
PRAVEG · price
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Praveg Ltd informed BSE that two allottees — Ms. Rekha Rajesh Patel (5,60,000 warrants) and Ms. Vibhuti Jayesh Patel (2,96,976 warrants), totaling 8,56,976 warrants — did not exercise their option to convert warrants into equity shares within the 18-month window ending November 16, 2025. As a result, the warrant subscription money already paid (Rs. 238.75 per warrant) stands forfeited, and these warrants stand cancelled under SEBI ICDR Regulation 169(3). This forfeiture means the company retains roughly Rs. 20.4 crore of subscription money and no equity dilution occurs from these warrants. The original allotment was made on May 17, 2024 on a preferential basis at a total issue price of Rs. 955 per warrant (Rs. 238.75 subscription + Rs. 716.25 exercise price).
No equity dilution from these warrants, which is mildly positive for existing shareholders, and the company retains the forfeited subscription money as income. However, the non-conversion also signals that these allottees did not find the stock attractive enough at the Rs. 716.25 exercise price over the 18-month period, which is a soft negative sentiment indicator.