Board approves forfeiture of upfront money on 19,38,334 unexercised warrants; warrants lapse
19,38,334 of the 88,62,000 warrants allotted on 19 Feb 2025 at Rs. 78/- each were not converted within the 18-month window.
- Total Warrants Allotted
- 88,62,000
- Warrants Exercised
- 69,23,666
- Warrants Lapsed/Unexercised
- 19,38,334
- Upfront Amount Forfeited
- Rs. 37,797,513 (25% of Rs. 19.50/- per warrant)
- Board Approval Date
- 28 September 2026
What happened
In February 2025 the company allotted 88,62,000 convertible warrants on a preferential basis to Promoter/Promoter Group and identified non-promoter persons, at an issue price of Rs. 78/- per warrant (face value Rs. 10/- plus premium of Rs. 68/-). Each warrant carried the right to apply for one equity share within 18 (Eighteen) months from 19th February, 2025.
Holders paid 25% upfront, i.e. Rs. 19.50/- per warrant, with the balance 75% due at the time of exercise.
The outcome
- Warrants exercised: 69,23,666
- Warrants lapsed: 19,38,334
- Amount forfeited: 37797513
- Change in capital structure: No
The Board, at its meeting held on Monday, September 28, 2026 (1:45 PM to 2:15 PM), approved the forfeiture of the upfront subscription amount on the unexercised warrants, in line with Regulation 169(3) of the SEBI (ICDR) Regulations, 2018, which provides that the upfront money stands forfeited if the conversion option is not exercised within the stipulated period.
What it means for shareholders
- The lapsed warrants have been cancelled, so no new shares were issued against them. The issued, subscribed and paid-up equity share capital is unchanged, meaning no further dilution from this portion.
- The company retains the forfeited upfront money; the balance 75% that would have come in on conversion will not be received for these warrants.
- The full amount originally expected on complete exercise of all warrants was Rs. 17,28,09,000/-.
The lapsed warrants were spread across 21 holders, with individual forfeited quantities ranging from 18667 to 385000 warrants.
How to read it
A lapse of this kind shows that part of the planned capital infusion did not come through, while the company keeps the upfront money as income-like forfeiture. Investors may view it as a mixed signal: less dilution, but also less fresh funding than originally envisaged.
Also from Anand Rayons
Promoter Anand Bakshi buys 10,377 Anand Rayons shares in a market purchase, holding rises to 27.47%
2 Oct 2026
Promoter and Promoter Group Buy Shares via Market Purchase
30 Sep 2026
More numbers
- Total warrants originally allotted88,62,000
- Issue price per warrantRs. 78/-
- Face value per warrantRs. 10/-
- Premium per warrantRs. 68/-
- Upfront amount per warrant (25%)Rs. 19.50/-
- Upfront share of issue price25%
- Total aggregate amount of warrant issueRs. 17,28,09,000/-
- Tenure for exercise18 (Eighteen) months
- Warrants exercised69,23,666
- Warrants lapsed19,38,334
- Amount forfeited37797513
- Number of holders whose warrants lapsed21
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