Outcome of Board Meeting held on 06.05.2025 - Preferential Allotment of Equity shares pursuant to conversion of unsecured loan into equity shares
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Vanta Bioscience Ltd's Board, at its meeting on May 6, 2025, approved the allotment of 8,00,000 equity shares on a preferential basis to its promoters, pursuant to the conversion of unsecured loans into equity. The shares were issued at Rs. 50 each, which includes a premium of Rs. 40 over the face value of Rs. 10. Of the total, 4,00,000 shares were allotted to Mr. Dopesh Raja Mulakala (Promoter and Managing Director) and 4,00,000 shares to Mr. S Chandra Sekhar Rao (Promoter). The allotment follows shareholder approval received at the EGM held on January 4, 2025, and In-principle approval from BSE. The shares were allotted in compliance with the Companies Act, 2013 and SEBI (ICDR) Regulations.
This is a non-cash transaction that converts existing promoter loans into equity, strengthening the company's balance sheet by replacing debt with equity capital. For existing shareholders, this leads to dilution of their stake since new shares are being issued to promoters, but it removes a repayment obligation and improves the company's debt position.