Raising of funds by way of creating, issuing and allotting upto 1,13,63,637 fully convertible warrants into equity shares of the Company.
Awaiting price reaction for this filing.
Seshachal Technologies Ltd's board, at its March 5, 2026 meeting, approved raising up to Rs. 25,00,00,014 by issuing 1,13,63,637 fully convertible warrants at Rs. 22 per warrant to 21 allottees in the non-promoter, public category on a preferential basis. The issue price is stated to be higher than the SEBI-determined floor price, and 25% of the total amount is payable upfront at allotment. Each warrant carries the right to subscribe to one equity share of Rs. 10 face value within 18 months, failing which the warrants lapse and the upfront amount is forfeited. The company will seek shareholder approval through a postal ballot with e-voting scheduled from March 7 to April 5, 2026. Post full conversion, the shareholding pattern will shift dramatically, with public holding rising from 66.13% to 98.05% and promoter holding falling from 33.87% to just 1.95%.
This is a major equity dilution event — the company's existing equity base of under 7 lakh shares will expand roughly 17-fold, and promoter control will shrink to under 2%. While the Rs. 25 crore capital raise may support growth, existing shareholders should brace for significant EPS dilution. The stock may face near-term pressure given the large float expansion and loss of promoter skin in the game.