We hereby inform you that the Preferential issue Committee of the Board of Director today consider and approved the allotment of 724574640 Equity Share
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Standard Capital Markets has allotted 72,45,74,640 equity shares (face value Re. 1 each) at Re. 1.30 per share on a preferential basis to two non-promoter entities — Flash Merchandise Private Limited (38.46 crore shares) and Yucca Merchants Private Limited (34.00 crore shares). The total consideration of about Rs. 94.19 crore was received through conversion of outstanding loans into equity. As a result, the company's paid-up equity share capital has increased sharply to Rs. 245.45 crore, comprising 245.46 crore shares.
Existing shareholders face significant dilution of roughly 29.5% as the share count jumps from about 173 crore to 245.46 crore. However, the loan-to-equity conversion helps deleverage the company by turning debt obligations into promoter-aligned (non-promoter) equity, which can ease interest burden and improve the balance sheet over time.