Revised outcome of meeting of the Board of Directors of Swadeshi Industries & Leasing Limited held on Thursday, April 17, 2025
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The board approved increasing the company's authorized share capital from Rs. 12.5 crore to Rs. 25 crore (raising it from 1.25 crore to 2.5 crore equity shares of Rs. 10 each). The company plans to issue 1,23,10,000 convertible warrants at Rs. 10 each on a preferential basis to 48 allottees, comprising promoters, promoter group, and non-promoter categories. Each warrant is convertible into 1 equity share (1:1 ratio), with 25% payable upfront and the remaining 75% at the time of conversion, which can be exercised anytime within 18 months. The issue price is set at par (Rs. 10) in line with SEBI ICDR Regulations. Promoters and promoter group are receiving the bulk of the warrants (~58 lakh warrants), indicating promoter-led capital infusion. The issuance is subject to shareholder approval via postal ballot/EGM scheduled for May 13, 2025.
This is a major equity dilution event with significant promoter participation. Existing minority shareholders will see their stake reduced once warrants are converted, though the at-par pricing (Rs. 10) may already reflect this in current trading. Investors should watch the EGM on May 13, 2025 and assess dilution impact based on current market price versus the Rs. 10 issue price.