Amendments to the Memorandum of Association for Increase in the Authorised Share Capital of the Company from Rs. 10 crores to Rs. 51 Crores.
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The board of Vega Jewellers Ltd has approved increasing the company's authorised share capital from Rs. 10 crore to Rs. 51 crore, a 5-fold jump, to create room for additional share issuances. Alongside, the board cleared the issue of 5,00,000 convertible warrants to the two promoters — Mr. Naveen Kumar Vanama and Mr. Sudhakar Vanama — on a preferential basis at Rs. 197.42 per warrant (Rs. 10 face value + Rs. 187.42 premium). Each warrant is convertible into one equity share within 18 months of allotment, after which promoter holding will rise to 71.22% and the public's stake will shrink to 28.78%. The amendment to the Memorandum of Association formalises the enlarged capital base.
This is a promoter-funded capital infusion that signals confidence from the promoters but will result in equity dilution for existing public shareholders once the warrants are converted. The sharp hike in authorised capital also indicates the company may plan further share issuances ahead.