Board approves preferential allotment of 66 lakh convertible warrants at Rs. 44/- each
Board approved allotment of 66 lakh convertible warrants on a preferential basis at Rs. 44/- each.
By ScoutQuest · · 2 min read
- Warrants Allotted
- 66 lakh convertible warrants on a preferential basis
- Issue Price
- Rs. 44/- each
- Total Consideration
- Rs. 7.26 crore
The board of Chandra Bhagat Pharma has approved a preferential allotment of convertible warrants — a route where investors pay now for equity shares they receive later, when the warrants are converted.
Deal terms
- 66 lakh convertible warrants allotted on a preferential basis at Rs. 44/- each.
- Each warrant converts into one equity share of face value Rs. 10/-, so full conversion would add 66 lakh equity shares.
- Total cash consideration is Rs. 7.26 crore, and the update states the company has received this amount against the allotment. It also states the warrants will convert into equity shares upon receipt of the remaining consideration amount.
- The issue price is stated to be not lower than the floor price determined under Regulation 164 of Chapter V of the SEBI ICDR Regulations.
- Conversion can be exercised at any time within 18 months from the date of allotment, in one or more tranches. Warrants not exercised within that period lapse.
Who is receiving the warrants
- 9 allottees in total.
- Seven are promoters or promoter group: Hemant Chandravadan Bhagat, Chitra Hemant Bhagat, Pranav Hemant Bhagat, Prachi Pranav Bhagat, Mahesh C Bhagat, Jay Hemant Bhagat and Lopa Mahesh Bhagat.
- Two are non-promoters: Samir Ramakant Dave and Chintan Vijay Makhecha, both shown with no shares held before this allotment.
Shareholding read-through
- The update shows each allottee's holding before the allotment and after it, with the post-issue column adding the warrants to existing shares (that is, assuming the warrants are converted).
- For Hemant Chandravadan Bhagat, the table shows 35.50% of the pre-issue capital and 22.47% of the post-issue capital.
- Because the total share base expands when the warrants convert, percentage holdings move even where the number of shares held by an allottee goes up.
What to keep in mind
- The equity share capital rises only on conversion; until then the warrants sit as a claim on future shares.
- A large part of the issue is going to promoters and promoter group entities, so their participation in the company goes up alongside the fresh money coming in.
- The 18-month window and the tranche option mean the timing of any share issuance is spread out rather than immediate.
Also from Chandra Bhagat Pharma
Certificate says corporate governance provisions do not apply for quarter ended 30 September 2026
21 Oct 2026
BSE grants in-principle approval for preferential issue of 66,00,000 convertible warrants
13 Oct 2026
Company Secretary & Compliance Officer Rajni Dawani resigns with effect from 30 September 2026
30 Sep 2026
More numbers
- Convertible warrants allotted66,00,000
- Issue price per warrantRs. 44/-
- Face value per equity shareRs. 10/-
- Total consideration for the allotmentRs. 7,26,00,000/-
- Total number of investors9
- Conversion window from allotment18 months
- Hemant Chandravadan Bhagat pre-issue shareholding35.50%
- Hemant Chandravadan Bhagat post-issue shareholding22.47%
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