Announced Tue, 14 Oct · 19:42 IST

Preferential issue of 40,00,000 warrants for cash consideration.

Warrants ConvertedFund Raising View source PDF

Price

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

The board of Saptak Chem and Business Ltd approved a preferential issue of 40,00,000 (40 lakh) convertible equity warrants to public (non-promoter) investors at Rs. 10.50 per warrant, raising up to Rs. 4.20 crore in cash. Each warrant can be converted into 1 equity share within 18 months, with 25% payable upfront and the remaining 75% on conversion. The warrants will be distributed equally (5 lakh each) among 8 investors — mostly individuals, HUFs, and a consultancy LLP — none of whom currently hold any shares. If fully converted, these 8 investors would together hold about 78.85% of the company's share capital on a fully diluted basis. Shareholder approval will be sought at an Extra-Ordinary General Meeting on November 12, 2025. The board also appointed Mr. Jubin Premji Gada as an additional non-executive independent director.

Likely market impact

This is a major ownership reshuffle — existing shareholders would be diluted to roughly 21% on a fully diluted basis once all warrants are exercised. The change in control-like structure and the small issue size relative to the resulting dilution could weigh on the stock in the near term, though actual impact depends on the warrant price versus the current market price (not disclosed here).