Corrigendum to the Notice of 35th Annual General Meeting of the Company held on September 27, 2025
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SC Agrotech has issued a corrigendum to the notice of its 35th AGM held on September 27, 2025, clarifying/modifying Item No. 12 regarding a preferential issue of up to 7 crore (7,00,00,000) Fully Convertible Equity Warrants at Rs. 16 per warrant, aggregating up to Rs. 112 crore. The warrants will be issued to 19 non-promoter allottees (all currently holding zero shares), with 25% payable upfront and the balance within 18 months on conversion. The corrigendum could not be issued before the AGM, so the company is reopening e-voting for the affected resolution. Proceeds are earmarked for working capital (Rs. 90 crore), purchase of fixed assets including agricultural land in Gujarat, an office/godown, and farm machinery (Rs. 10 crore), and general corporate purposes (Rs. 12 crore). Brickwork Ratings has been appointed as monitoring agency.
This is a highly dilutive issue — if all warrants are converted, the equity base will expand roughly 12.7x from ~59.95 lakh shares to ~7.6 crore shares, significantly diluting existing public shareholders. The floor price of Rs. 15.93 is barely above the current market levels, and existing holders not participating will see their stake shrink materially. The large working capital allocation alongside new land/infrastructure purchases signals an aggressive expansion push, which could be a positive if executed well but raises concerns about capital deployment efficiency for a small company.