we here by submit offer letter PAS-4 for Preferential Allotment of Equity Shares.
Awaiting price reaction for this filing.
Shivamshree Businesses Ltd is issuing 3,00,00,000 equity shares at ₹1.50 each on a preferential basis, raising ₹4.5 crore from 13 non-promoter allottees (mostly directors, their family members and HUFs). The price is fixed at a premium to the minimum ₹1.26 per share determined by an independent registered valuer, as the stock falls in the 'infrequently traded' category under SEBI rules. The funds will be used for working capital, business expansion and general corporate purposes. Post-issue, paid-up capital will jump from ₹4.57 crore to ₹7.57 crore (~66% dilution), and the offer was open only for 3 days from April 28–30, 2025. The company is small (total assets ~₹6.4 crore in FY24) with negative other equity and marginal losses in recent years.
Existing shareholders will face significant dilution (~66% increase in share count) as shares are largely being allotted to insiders and their family entities at a price just above the regulatory minimum. The stock may see near-term pressure given the steep expansion of the equity base against a weak financial profile with negligible profits.