Issue of 5,00,000 Convertible Warrants to Mr. Naveen Kumar Vanama and Mr. Sudhakar Vanama, Promoters of the Company.
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Vega Jewellers' board has approved issuing 5,00,000 convertible warrants (each convertible into 1 equity share) to its 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), totaling roughly Rs 9.87 crore. The warrants must be converted into equity within 18 months, or the amount paid will be forfeited. Post-conversion, promoter holding will rise to 71.22%, while public shareholders will be diluted to 28.78%. The board also approved increasing authorized share capital from Rs 10 crore (1 crore shares) to Rs 51 crore (5.1 crore shares) to accommodate this and potential future issuances.
This signals insider confidence from promoters putting in fresh capital, but existing public shareholders will face dilution once the warrants convert. The hike in authorized capital suggests more fundraising could follow, which may keep the stock under short-term pressure but strengthens the company's capital base if funds are deployed for growth.