Intimation for issue of 60,00,00 convertible warrants on preferential issue basis
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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
The board of Rita Finance and Leasing Ltd approved raising funds by issuing up to 60,00,000 (sixty lakh) convertible warrants at a minimum price of Rs. 20 per warrant (including premium), with each warrant convertible into 1 equity share of Rs. 10 face value. The warrants are being allotted to 18 allottees, all of whom are currently non-shareholders, with the largest allotments going to Rajnikant C Shukla HUF, Sellwin Traders Ltd, and Mideast Healthcare Pvt Ltd (7.9 lakh warrants each). The warrant holders must pay 25% upfront and the remaining 75% on conversion, with 18 months to exercise. The company also plans to increase its authorized share capital from Rs. 10 crore to Rs. 16 crore and will seek shareholder approval via postal ballot. If fully converted, this could raise up to Rs. 12 crore and create 60 lakh new shares.
Shareholders should expect dilution if all warrants are exercised, with new shareholders collectively holding nearly 37.5% post-allotment. The capital raise depends on allottees choosing to convert within 18 months; non-exercise would result in forfeiture of the 25% upfront payment. Existing shareholders will need to approve both the capital increase and preferential issue via postal ballot.