Allotment of Share Warrants convertible into Equity shares to the Promoter and Non- Promoter Group on a preferential basis.
Price
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Awaiting price reaction for this filing.
RDB Real Estate Constructions has allotted 88.80 lakh share warrants (out of 179.80 lakh) convertible into equity shares to six members of the promoter group (Dugar family). The warrants carry a face value of Rs. 10 each and are priced at Rs. 87.15 per share, which includes a premium of Rs. 77.15. Total issue size aggregates to about Rs. 156.70 crore, of which 25% upfront money (about Rs. 19.35 crore) has already been received from the allottees. The issue price was recomputed under SEBI rules and was significantly higher than the originally proposed Rs. 36 per share. Each warrant must be converted into one equity share within 18 months by paying the balance 75% amount. Since these are warrants and not full shares yet, the company's paid-up equity capital will only rise when the warrants are actually converted in the future.
This is a promoter-driven capital infusion with no immediate dilution since only 25% money has come in; however, full conversion within 18 months will increase the share count and could create mild dilution for existing public shareholders. The fact that the issue price was set well above the originally proposed level is positive, but reliance on promoter-group funding rather than institutional investors limits the sentiment boost.