Intimation of Preferential Issue of Equity Shares and Convertible Warrants
ROML · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Raj Oil Mills Ltd's Board has approved a preferential issue raising up to Rs. 9.2 crore through two instruments: up to 10 lakh equity shares and up to 10 lakh convertible warrants, both priced at Rs. 46 per security (face value Rs. 10 plus premium Rs. 36). The issue is to 7 non-promoter investors including individuals and Glassil Industries LLP. The warrants are convertible into equity shares within 18 months from allotment date, and if not converted, the upfront consideration paid by warrant holders will be forfeited. Upon full conversion of both instruments, the company's paid-up equity capital will increase from Rs. 14.99 crore to Rs. 16.99 crore.
This preferential issue will dilute existing shareholders by approximately 13.3% upon full conversion of warrants. The company is raising fresh capital from non-promoter investors, which could provide liquidity but may exert short-term downward pressure on the stock price due to dilution.