Announcement under Regulation 30
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Swagtam Trading & Services Ltd's board, meeting on May 14, 2025, approved the allotment of 24,15,000 convertible warrants to non-promoter investors at Rs. 65 per warrant (Rs. 10 face value + Rs. 55 premium), aggregating to Rs. 15.70 crore. The warrants carry a 25% upfront payment (Rs. 3.92 crore received now), with the remaining 75% payable on conversion into equity shares within 18 months; unconverted warrants will lapse and the upfront amount will be forfeited. The issue is being made under the preferential allotment route, following shareholder approval obtained on February 27, 2025, and SEBI ICDR regulations. The board also constituted an Allotment Committee comprising four directors to oversee the process.
This is a dilutive equity-raising exercise aimed at bringing in new non-promoter investors. Existing shareholders should note potential equity dilution once the warrants are converted (within 18 months), while the company gets Rs. 3.92 crore of fresh capital upfront. Short-term stock price may face mild pressure due to dilution overhang, though the issue price of Rs. 65 sets a benchmark for the conversion valuation.