Tembo Global Industries Limited has informed the Exchange about preferential issue of 24,00,000 Equity shares of Rs. 10/- each pursuant to conversion of warrants.
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Tembo Global Industries has informed the exchange about the issuance of 24,00,000 (24 lakh) equity shares of face value Rs. 10 each. These shares are being allotted on a preferential basis to warrant holders who have converted their warrants into equity shares. This means existing warrant holders chose to exercise their right to convert warrants into full equity shares. The face value of the total issuance is Rs. 2.4 crore, though the actual conversion price may be higher depending on the warrant terms.
This results in equity dilution for existing shareholders, but the conversion of warrants into shares is generally seen as a positive signal, indicating that warrant holders found it worthwhile to invest in the company at the agreed conversion price.