Announced Tue, 17 Mar · 15:05 IST

The Board of Directors has allotted 11,40,00,000 fully convertible warrants of the Company to the promote & promoter Group and non-promoters pursuant to In-Principle Letter dated 09-03-2026 ....

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AI summary

The Board of Directors of Ramchandra Leasing & Finance Ltd (now Raama Finance Limited) has allotted 11.4 crore fully convertible warrants to 27 allottees including promoters, promoter group, and non-promoters on a preferential basis. The warrants are priced at Rs. 4.80 each, taking the total issue size to about Rs. 54.72 crore. Allottees have paid 25% (Rs. 1.20 per warrant) upfront, and the remaining 75% is payable within 18 months on conversion to equity shares of Re. 1 face value. As the warrants are yet to be converted, the company's paid-up equity share capital remains unchanged for now. Post full conversion, promoter Akhil Mittal's stake will dilute from 27.46% to 15.26%, while SKG Assets Management Pvt Ltd and Rahul Sharma will emerge as major allottees with 10.25% and 7.17% holdings respectively.

Likely market impact

Existing shareholders will face significant dilution once the warrants are converted, potentially weighing on the stock price. However, the staggered payment structure means dilution is not immediate and depends on whether allottees pay the balance 75% within 18 months. Failure to convert would lead to forfeiture of the 25% amount already paid, which is a small positive for the company.