Disclosure regarding allotment of Optionally Convertible Debentures on preferential basis is attached.
VARDMNPOLY · price
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Vardhman Polytex Limited's Board has allotted 1,500 Optionally Convertible Debentures (OCDs) at Rs. 1,00,000 per debenture, raising Rs. 15 crore in total. The OCDs have been issued to Special Situation India Fund, a non-promoter entity, on a preferential basis. The full amount has been received upfront. These OCDs are convertible into equity shares of face value Re. 1 each within 18 months from the date of allotment. The conversion price will be calculated based on a date 30 days prior to when the OCD holder becomes entitled to convert them into equity shares.
This preferential issuance dilutes existing shareholders' stakes as new equity shares will be issued upon conversion. The Rs. 15 crore infusion provides capital, but conversion at a future date (at prices based on market rates 30 days prior) could impact the stock if large numbers of shares are issued.