Board approves authorised capital rise to Rs.23,50,00,000 and 2,00,00,000 warrants at Rs.11/- each

Board approved raising authorised share capital to Rs.23,50,00,000.

Tue 6 Oct 2026

Warrants Approved

2,00,00,000 warrants at Rs.11/- each, aggregating Rs.22,00,00,000

Authorised Share Capital

Rs.23,50,00,000

Warrant Allottees

Promoter category: 1,17,93,000 warrants; public category: 82,07,000 warrants

The company shared the outcome of its board meeting held on October 06, 2026. The Board approved two main items: an increase in the authorised share capital and a preferential issue of warrants convertible into equity shares. Both are subject to shareholder approval and other necessary approvals.

Authorised share capital

• The Board approved an increase in the authorised share capital of the company to Rs.23,50,00,000.
• Capital Clause V of the Memorandum of Association is to be amended to reflect the revised authorised capital.

Preferential issue of warrants

• 2,00,00,000 warrants convertible into equity shares, at a price of Rs.11/- per warrant.
• The total amount for which the securities are proposed to be issued is Rs.22,00,00,000.
• Proposed allottees include both promoter category and public category investors. Promoter category allottees are proposed to be allotted 1,17,93,000 warrants and public category allottees 82,07,000 warrants.
• Each warrant carries a right to subscribe to an equity share on exercise.

Terms of the warrants

• 25% of the warrant issue price is payable to the company at the time of subscription and allotment of each warrant; the balance is payable on exercise of the warrants.
• The tenure of the warrants shall not exceed 18 months from the date of allotment.
• The warrants may be exercised in tranches during that period.
• If a warrant holder does not exercise the warrants within the tenure, the unexercised warrants lapse and the amount paid on them stands forfeited by the company.

Other board decisions

• A valuation report from an independent registered valuer was noted, for calculation of the minimum floor price.
• The Board fixed October 6, 2026 as the relevant date for the preferential issue.
• An extraordinary general meeting is to be held on November 5, 2026 to seek shareholder approval, and a practising company secretary was appointed as scrutiniser to conduct the e-voting.

What this means for investors

• The authorised capital increase raises the ceiling up to which the company can issue shares; the warrants are the route through which fresh equity shares would come in.
• If the warrants are fully exercised, new equity shares would be issued to the allottees, which increases the total number of shares of the company; this is a dilution factor that investors can weigh.
• The company receives the warrant subscription amount at allotment and the balance on exercise, while amounts paid on warrants that lapse are forfeited.
• Promoter category participation in the issue can be seen as a signal of promoter involvement; the update also lists public category allottees, including bodies corporate and LLPs.
• The proposals are subject to shareholder approval at the EGM and to other necessary approvals.

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