STL Networks Limited has informed the Exchange about Preferential issue
STLNETWORK · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
STL Networks Limited's Board has approved issuing up to 4.5 crore convertible warrants to promoter Twin Star Overseas Limited at Rs. 24 per warrant, aggregating Rs. 108 crore. Each warrant is convertible into 1 equity share (face value Rs. 2 plus Rs. 22 premium) within 18 months of allotment. If not exercised, unexercised warrants will lapse and subscription amounts forfeited. Post-allotment, promoter's holding will increase from 42.91% to 47.73% on a fully diluted basis. The issue requires shareholder approval via postal ballot.
This preferential allotment to the promoter increases their stake significantly, which could dilute non-promoter shareholders. The Rs. 108 crore fund infusion provides capital, though the purpose of funds has not been specified in the filing.