Board Meeting outcome for allottment of 15,50,000 Equity Shares on Preferential Basis
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SMT Engineering Ltd's board approved the allotment of 15,50,000 equity shares at Rs. 225 per share (face value Rs. 10) on a preferential basis to 8 non-promoter allottees, raising a total of approximately Rs. 34.88 crore in cash. The largest allottee is Natwarlal Keshavjibhai Kawa, receiving 4,23,000 shares worth Rs. 9.52 crore, followed by Kunal Haresh Mehta (2,88,000 shares) and Bijal Kaushik Gandhi (2,09,500 shares). The allottees are a mix of individual investors and Hindu Undivided Families (HUFs). This is the first major capital raise for the company (formerly Adarsh Mercantile Limited) since its name change, and the shares are being issued at a steep premium of Rs. 215 over face value.
The preferential issue will dilute existing shareholders and increase the company's equity base, but brings in Rs. 34.88 crore of fresh capital. Since all allottees are non-promoters and the issue price is at a substantial premium to face value, existing shareholders may see some dilution but the capital infusion could support business growth if deployed productively.