We are hereby submiting the Outcome of the Board Meeting regarding the allotment of Equity Shares on preferential basis.
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Sharpline Broadcast Ltd's board has approved the allotment of 1,18,57,140 equity shares at Rs. 14 per share (face value Rs. 10, premium Rs. 4) on a preferential basis, aggregating to about Rs. 16.6 crore. This is being done to convert existing loans owed to the allottees into equity. The shares are being issued to four non-promoter entities: JMD Realtors, MP Infracon, Bundella Fincap, and Sharp Eye Medicare. Following this allotment, the company's paid-up equity capital rises from Rs. 16.78 crore to Rs. 28.63 crore, a jump of roughly 70%.
Existing shareholders will see their ownership diluted as the share count increases significantly through this loan-to-equity conversion. While the company reduces its debt burden, the issuance at a Rs. 4 premium over face value is relatively low, and the stock may face short-term pressure from this supply expansion.