Increase in Authorised share capital and consequent Amendment in Memorandum of association (MOA) of the company
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
The Board of Veefin Solutions approved increasing the authorised share capital from Rs. 25 crore to Rs. 30 crore by creating an additional 50 lakh equity shares of Rs. 10 each. The company will issue 12,99,857 equity shares to non-promoter investors at Rs. 390 per share on a preferential basis, raising about Rs. 50.69 crore. Additionally, it will issue up to 11,12,820 convertible warrants to promoters and non-promoters at Rs. 390 each, potentially raising another Rs. 43.40 crore (25% upfront, balance on conversion within 18 months). In total, the company is looking to raise roughly Rs. 94 crore from these preferential allotments. All these actions are subject to shareholder approval at an upcoming Extra Ordinary General Meeting. The allotments are being made to a mix of promoters and around 50 non-promoter investors including SR Global Fund, Shubhlaxmi Polester Ltd, and several HNIs.
This is a significant dilution event for existing shareholders, as new shares and warrants are being issued. While the company is raising fresh capital for growth, shareholders should expect a reduction in their proportional ownership. The warrants carry future dilution risk if converted. Short-term stock price may face pressure due to the large equity dilution at Rs. 390 per share.