Revised outcome meeting of the Board of Directors of Swadeshi Industries & Leasing Limited held on Thursday, April 17, 2025
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The Board of Swadeshi Industries & Leasing Ltd, which met on April 17, 2025, has approved increasing the company's authorized share capital from Rs. 12.5 crore (1.25 crore equity shares of Rs. 10 each) to Rs. 25 crore (2.5 crore equity shares of Rs. 10 each). It also approved issuing up to 1,23,10,000 convertible warrants at Rs. 10 each on a preferential basis to 48 allottees, comprising 12 promoter/promoter group members and 36 non-promoters. Each warrant is convertible into one equity share on a 1:1 basis, with 25% of the price payable upfront and the balance 75% at the time of conversion within 18 months from allotment. The Board also amended the Articles of Association to enable further securities issuance and sought shareholder approval to allow loans from directors and promoters with an option to convert into equity. All resolutions will be put to shareholders through a postal ballot, with the EGM scheduled for May 13, 2025.
This is a significant dilution event for existing shareholders. The preferential warrant issue, if fully converted, would expand the equity base substantially and increase the promoter group's holding. Shareholders should review the EGM notice and assess the pricing terms ahead of the May 13, 2025 vote.