Board approves raising up to Rs. 75 crore via 50,00,000 convertible warrants at Rs. 150
Board meeting outcome: the Board approved raising funds aggregating up to Rs. 75 crore by issuing up to 50,00,000 Convertible Warrants into Equity Shares at Rs. 150/- each.
By ScoutQuest · · 3 min read
- Fundraise Size
- up to Rs. 75 crore via 50,00,000 convertible warrants
- Issue Price
- Rs. 150/- each (face value Rs. 10/- + premium Rs. 140/-); registered valuer price Rs. 142.31
- Conversion Terms
- Convertible within 18 Months from allotment; 25% upfront, balance 75% within 18 months
The Board approved, subject to approvals
- Raising of funds aggregating up to Rs. 75 crore by issuing up to 50,00,000 Convertible Warrants into Equity Shares of face value Rs. 10/- each, at an issue price of Rs. 150/- per security, including a premium of Rs. 140/-.
- Route: preferential issue on a private placement basis, to identified investors / eligible investors.
- The issue is subject to approval of the members, where applicable, necessary stock exchange approvals and other regulatory and statutory approvals.
Who the warrants are proposed for
- Cubex Securities Ltd (Promoter): 33,90,000 warrants, investment Rs. 50,85,00,000
- Ajeet Modi (Non Promoter): 6,00,000 warrants, investment Rs. 9,00,00,000
- H & A Unicorns (Non Promoter): 4,05,000 warrants, investment Rs. 6,07,50,000
- Ruchas Ventures (Non Promoter): 4,05,000 warrants, investment Rs. 6,07,50,000
- Payal Tandan Shrivastava (Non Promoter): 2,00,000 warrants, investment Rs. 3,00,00,000
Price and terms
- Price arrived at by Registered Valuer Saksham Valuer Private Limited is Rs. 142.31; the Board proposed to issue the same at Rs. 150/-.
- Relevant date: 7th Oct 2026.
- Convertible within 18 Months from the date of allotment; warrants that are not converted by then will expire and any amount paid will be forfeited.
- Payment: 25% upfront, balance 75% within 18 months.
- Warrants post conversion to equity shares shall rank pari passu with the existing equity shares; no change in control.
- Post conversion, the shares will be listed on NSE and BSE.
- Allotment within 15 days from the date of receipt of In-Principle Approval. The Board has also deferred the EGM to be held on 28.10.2026.
Where the money is proposed to go
100% of the issue proceeds is proposed to be utilised for procurement and installation of a vacuum melting furnace at its new manufacturing facility, including land, civil and electrical works and other balancing equipment. The stated end-use industries include nuclear, electrical manufacturing of specialised products, aerospace, defence, oil and gas, and other heavy engineering — for ferrous-based (special steels, titanium and its alloys, nickel-based, chrome-based etc.) and non-ferrous (oxygen-free copper, beryllium copper, zirconium/chrome alloys etc.) products. The company states it already possesses the downstream processing equipment for these products, and the furnace would complement it.
Indicative shareholding (before issue vs after issue or full conversion)
- Promoter and promoter group: 63,60,304 shares and 44.42%, moving to 97,50,304 shares and 50.47%
- Public: 79,58,671 shares and 55.58%, moving to 95,68,671 shares and 49.53%
- Total equity shares: 1,43,18,975 and 100.00%, moving to 1,93,18,975 and 100%
Indicative holdings of the proposed investors show Cubex Securities Ltd going from 18,67,395 shares (13.04%) to 52,57,395 shares (28.00%) after issue or full conversion; Ajeet Modi from 0 to 6,00,000 shares (3.10%); H & A Unicorns from 5,500 shares (0.038%) to 4,05,000 shares (2.12%); Ruchas Ventures from 0 to 4,05,000 shares (2.09%); Payal Tandan Shrivastava from 0 to 2,00,000 shares (1.03%).
What to keep in mind
- These are approved proposals at this stage: the figures represent the proposed issue and do not constitute confirmation of allotment. The actual allotment and subscription outcome will be disclosed upon allotment.
- Warrants are a right to apply for equity shares later; the money comes in stages — 25% upfront and the balance 75% within 18 months — so the full Rs. 75 crore is not received on day one.
- Because the promoter is one of the proposed allottees, promoter holding is indicated to rise from 44.42% to 50.47% on full conversion.
Also from Cubex Tubings
Cubex Tubings Q2 FY27: EBITDA margin at 8.62%, Board approves ₹75 crore warrant issue
24 Oct 2026
Board approves Sep 2026 quarter and half-year results; auditors' review finds nothing indicating material misstatement
23 Oct 2026
EGM on 6 November 2026 to consider issue of up to 50,00,000 convertible warrants at Rs. 150/- each
15 Oct 2026
More numbers
- Funds to be raised (aggregating up to)Rs. 75,00,00,000
- Convertible warrants proposed to be issued50,00,000
- Issue price per securityRs. 150/-
- Price arrived at by registered valuerRs. 142.31
- Conversion period from date of allotment18 Months
- Upfront payment on warrants25 %
- Promoter and promoter group holding after full conversion50.47 %
- Total equity shares after issue or full conversion1,93,18,975
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