Issuance of Equity shares and Convertible Warrants on preferential basis to promoters and Non-promoters of the Company.
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The board approved issuing up to 7 crore equity shares to non-promoters at Rs. 6 per share (face value Rs. 1, premium Rs. 5), raising Rs. 42 crore. Separately, up to 48 crore convertible warrants will be issued to promoters and non-promoters at Rs. 6 each, potentially raising another Rs. 288 crore if fully converted. Warrants have an 18-month tenor and can be converted into equity in tranches. A total of 199 investors are involved, mostly small individual/HUF allottees, with one promoter (Dhirajbhai Koradiya) receiving warrants worth about Rs. 129 crore. After allotment, promoter holding will stand at 39.12% and non-promoters at 60.88%.
This is a significant equity expansion — up to 55 crore new shares plus warrants — leading to substantial dilution for existing shareholders. The stock may see short-term pressure given the large preferential issuance and concentrated promoter warrant allocation, though the Rs. 330 crore potential inflow could fund business growth if deployed effectively.