Please find enclosed herewith Board Meeting Outcome in respect of Raising of Funds by way of Warrents Convertible into Equity Shares.
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Awaiting price reaction for this filing.
The board of Royal Sense Limited, meeting on 17th April 2025, approved issuing up to 4,00,000 convertible equity warrants at Rs. 251 each (including a Rs. 241 premium over the Rs. 10 face value), aggregating to about Rs. 10.04 crore, on a preferential allotment basis. Of these, 2,50,000 warrants go to promoter and Managing Director Rishabh Arora, and the remaining 1,50,000 warrants go to 25 non-promoter individuals. Each warrant can be converted into one equity share within 18 months of allotment. The company has called an Extra-Ordinary General Meeting on 16th May 2025 to seek shareholder approval. Post-issue, promoter holding will marginally rise from 61.50% to 61.57% on a fully diluted basis.
This is a small fundraise (Rs. 10.04 crore) from promoter and a group of individual investors, which is mildly positive as it signals insider confidence (promoter participating) but is also dilutive for existing shareholders. Shareholders should watch the EGM outcome on 16th May 2025 and the warrant conversion over the next 18 months, as further dilution could occur when warrants are exercised.