D.P. Abhushan544161Preferential allotment

EGM held; preferential issue of equity shares and warrants placed before shareholders

D.P. Abhushan Ltd held its 01/2026-27 Extra-ordinary General Meeting on Thursday, October 29, 2026 through video conferencing; it ran from 3:00 P.M. to 3:15 P.M.

By ScoutQuest · Thu 29 Oct 2026, 6:12 PM IST · 3 min read

₹558.01 croreTotal expected proceeds from shares and warrants

Aggregate value of warrants₹434.11 crore

Aggregate value of equity share issue₹123.90 crore

Total expected proceeds from shares and warrants ₹558.01 crore: Aggregate value of warrants ₹434.11 crore, Aggregate value of equity share issue ₹123.90 crore.

Issue price per share/warrant: ₹1,430 each
Equity shares preferential issue: up to ~8.66 lakh equity shares aggregating about ₹123.90 crore
Warrants preferential issue: up to ~30.36 lakh fully convertible equity warrants aggregating about ₹434.11 crore

Meeting and outcome

D. P. Abhushan Limited held its 01/2026-27 Extra-ordinary General Meeting on Thursday, October 29, 2026 through Video Conferencing and Other Audio-Visual Means. The meeting commenced at 3:00 P.M. and concluded at 3:15 P.M. The Chairman placed two Special Resolutions before the shareholders for consideration and approval. Voting results are to be declared after the scrutinizer's report, at the earliest and within two working days after the meeting.

Resolution 1 - Preferential issue of equity shares

Up to ~8.66 lakh fully paid-up equity shares at an issue price of ₹1,430 per equity share.
This aggregates to approximately ₹123.90 crore.

Resolution 2 - Preferential issue of fully convertible equity warrants

Up to ~30.36 lakh fully convertible equity warrants at an issue price of ₹1,430 per warrant.
This aggregates to approximately ₹434.11 crore.
Each warrant is convertible into one fully paid-up equity share of the Company.
Twenty-five per cent of the issue price is payable at the time of subscription, and the balance seventy-five per cent upon conversion.
The warrants would be exercisable within eighteen months from the date of allotment.

Where the money is proposed to go

Aggregate proceeds from the equity shares and warrants are expected to be approximately ₹558.01 crore.
Of this, approximately ₹513 crore is proposed to be used towards expansion of the Company's retail network and funding inventory requirements of new stores and showrooms.
The balance of approximately ₹45.01 crore is proposed for general corporate purposes.

Note on the terms

The Notice of the EoGM was dated October 6, 2026, and a Corrigendum dated October 23, 2026 related to the substitution of certain proposed allottees under the preferential issue. Apart from the amendments in the Corrigendum and consequential changes, the other terms of the proposed preferential issue remained unchanged.

Voting process

Remote e-voting commenced at 9:00 A.M. on Monday, October 26, 2026 and ended at 5:00 P.M. on Wednesday, October 28, 2026.
The facility remained open until 15 minutes after the conclusion of the meeting for members who had not voted earlier.
Mr. Anand Lavingia, representing M/s. Prasad and Partners LLP, was appointed as the Scrutinizer.

What this means for a retail investor

A preferential issue means the company is issuing new shares and warrants to specific investors. The equity shares add to the total number of shares immediately; the warrants can add more shares later, when they are converted within the eighteen-month window.
More shares in issue can reduce the percentage of the company that an existing small shareholder holds, which is called dilution. The full effect of the warrants comes only on conversion, and only 25% of the warrant price is paid upfront.
The stated purpose links most of the money raised, about ₹513 crore, to opening and stocking new stores and showrooms, which is a business expansion plan rather than repayment or general use.
The size of the fundraise and the issue price of ₹1,430 are the numbers to compare against the company's existing share base and financials when the outcome of the voting is declared.

Also from D.P. Abhushan