Allotment of Equity Shares pursuant to conversion of Warrants
Price
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Awaiting price reaction for this filing.
Prospect Consumer Products Ltd has converted 2,12,840 warrants into an equal number of equity shares of Rs. 10 face value, after receiving Rs. 1.02 crore from allottees at Rs. 48 per warrant (the balance 75% of the issue price). The warrants were originally issued on April 25, 2024 at Rs. 64 each (with 25% upfront), and this is the second tranche of conversion — 3,63,000 warrants were converted earlier in August 2024. The allottees include promoters Vimal Mishra, Priyanka Mishra and Prakash Mishra, along with several non-promoter investors. After this allotment, the company's paid-up equity capital has risen from Rs. 5.32 crore (53.23 lakh shares) to Rs. 5.54 crore (55.36 lakh shares), and 5,99,160 warrants still remain pending conversion within the 18-month window.
This is a routine conversion of previously issued warrants into shares, which increases the share count and slightly dilutes existing shareholders by about 4% (2.12 lakh new shares out of ~55 lakh total). The fresh capital of Rs. 1.02 crore is small relative to the company's size, so the price impact is likely minimal. Shareholders should note that another 5.99 lakh warrants could still convert in the future, adding further dilution if exercised.