Board okays Rs 40.24 crore convertible warrants to promoters on preferential basis
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Board approved issuing 22.85 lakh convertible warrants at Rs 176.10 each, totaling about Rs 40.24 crore, on a preferential basis to four promoter group members of the Agarwal family. Each warrant converts into one equity share within 18 months. Issue price includes Rs 10 face value plus Rs 166.10 premium. Allottees pay 25 percent upfront and 75 percent on conversion. Subject to shareholder approval.
Dilution risk of about 27 percent upon full conversion. Promoter holding rises further. Short-term share price may face pressure due to supply overhang.