Revised cost of Project for preferential issue due to Under Subacribtion of Equity Shares
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Subam Papers Ltd has disclosed a shortfall in its preferential issue fundraising. The company planned to raise ₹107.04 Crores through convertible warrants (₹40.01 Crores to promoters) and equity shares (₹67.02 Crores to public). However, the equity portion received only ₹64.36 Crores against the target of ₹67.02 Crores, a shortfall of ₹2.66 Crores. The warrant subscription brought in just ₹10.00 Crores (25% upfront on ₹40.01 Crores), indicating investors have not fully committed. As a result, total funds raised came to ₹74.36 Crores instead of the planned ₹107.04 Crores. The company has revised its project cost down to ₹104.37 Crores by reducing the General Corporate Purposes allocation from ₹4.03 Crores to ₹1.36 Crores.
The under-subscription indicates weak investor appetite for this small-cap paper manufacturing company's equity. The reduced fundraising means the company may face tighter constraints on its planned debt repayment and expansion into corrugated boxes. Existing shareholders should monitor whether the company can still meet its operational goals with significantly lower proceeds.