Issue of securities by way of warrants on preferential basis convertible into paid up equity shares of the Company
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Awaiting price reaction for this filing.
The Board of Directors, at its meeting on December 8, 2025, approved increasing the authorised share capital from Rs. 13 crore to Rs. 40 crore (from 1.3 crore to 4 crore equity shares of Rs. 10 each) along with a new set of Articles of Association. The Board also approved a preferential issue of up to 2,83,33,333 convertible warrants to 35 allottees, each convertible into one equity share of Rs. 10 face value, at an issue price of Rs. 12 per warrant (Rs. 10 face value plus Rs. 2 premium), aggregating up to Rs. 33.99 crore. The warrants carry an 18-month conversion window from the date of allotment, with consideration in cash. An Extra-Ordinary General Meeting has been scheduled for January 8, 2026 to seek shareholder approval for these proposals.
If fully converted, the warrants would expand the equity base by roughly 4.5 times current levels, leading to significant dilution for existing shareholders. The stock may face short-term pressure due to dilution overhang, though the Rs. 34 crore infusion could support growth if deployed productively. Shareholders should review the list of allottees and the intended use of funds before voting at the EGM.