Announced Wed, 13 May · 14:07 IST

Intimation under regulation 30 for allotment of Warrants

Fund Raising View source PDF

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AI summary

Rita Finance and Leasing Limited has approved the allotment of 60,00,000 Convertible Warrants to 18 non-promoter investors at Rs. 20 per warrant. The company received 25% of the issue price (Rs. 5 per warrant) upfront, with the remaining 75% payable upon exercise. Each warrant entitles the holder to subscribe to one equity share of face value Rs. 10 within 18 months from allotment. All allottees were previously non-shareholders, with post-allotment holdings ranging from 0.03% to 4.94% each. The warrant holders must exercise within the 18-month window or the warrants lapse and amounts paid are forfeited.

Likely market impact

This preferential allotment to non-promoter investors will dilute existing shareholders by approximately 37.5% upon full conversion. The company receives immediate capital infusion of Rs. 7.5 crore (25% of Rs. 30 crore total issue value) with potential additional Rs. 22.5 crore if all warrants are exercised.