Board approves authorised capital rise to Rs. 31,00,00,000 and preferential issue of convertible warrants

Dev Labtech Venture's board met on 7 October 2026 and approved two main proposals.

Wed 7 Oct 2026

Warrants to be issued

upto 1,37,00,000 convertible warrants at Rs. 13 each

Total issue size

Rs. 17,81,00,000

Post-allotment shareholding

promoter/promoter group 61.64%, non-promoter 38.36%

Two decisions from one board meeting

Dev Labtech Venture's board met on 7 October 2026 and approved two connected proposals — an increase in the authorised share capital, and a preferential issue of convertible warrants. Both are subject to shareholder approval at an Extra Ordinary General Meeting (EGM) to be held on 5 November 2026.

Increase in authorised share capital

• The authorised share capital is to go up from Rs. 25,00,00,000, divided into 5,00,00,000 equity shares of Rs. 5 each, to Rs. 31,00,00,000, divided into 6,20,00,000 equity shares of Rs. 5 each.
• The new shares will rank pari-passu with the existing equity shares, and Clause 5 of the Memorandum of Association is to be altered accordingly.
• Authorised capital is the ceiling up to which a company may issue shares; the issue described below is what would actually add shares.

The preferential issue

• Up to 1,37,00,000 convertible warrants, issued on a preferential basis at Rs. 13 per warrant.
• Each warrant is convertible into one equity share of face value Rs. 5, with a premium of Rs. 8.
• The total consideration is Rs. 17,81,00,000, payable in cash.
• The warrants carry a tenor of 18 months from the date of allotment and can be converted in one or more tranches.
• The issue goes to promoter/promoter group and non-promoter investors, across 7 investors.

Who gets the warrants

• Donda Jerambhai Lavjibhai (Promoter): 27,00,000 warrants, Rs. 3,51,00,000/-
• Donda Labhuben Jerambhai (Promoter): 27,00,000 warrants, Rs. 3,51,00,000/-
• Jaykumar J Donda (Promoter): 26,96,000 warrants, Rs. 3,50,48,000/-
• Donda Jerambhai Lavjibhai HUF (Promoter Group): 26,96,000 warrants, Rs. 3,50,48,000/-
• Vanrajsinh Boghubha Sarvaiya (Non-Promoter): 14,16,000 warrants, Rs. 1,84,08,000/-
• Rajendrasinh Hathisinh Sarvaiya (Non-Promoter): 14,16,000 warrants, Rs. 1,84,08,000/-
• Sachin Madhusudan Chhatre (Non-Promoter): 76,000 warrants, Rs. 9,88,000/-

Shareholding after allotment

The update states that, consequent to the allotment, the promoter/promoter group and non-promoter shareholding stands at 61.64% and 38.36% respectively.

Other decisions and the EGM

• Mr. Ricky Kapadia, Proprietor of M/s. RPK & Associates, appointed as Scrutinizer to scrutinize the voting process of the EGM.
• National Securities Depository Limited (NSDL) appointed to enable the e-voting platform.
• Cut-off date for e-voting eligibility: Thursday, 29 October 2026.
• EGM: Thursday, 5 November 2026 at 01:00 p.m. (IST), through video conferencing / other audio-visual means.

How to read this

A preferential issue of convertible warrants brings cash into the company at the time of subscription. On conversion, each warrant adds one equity share, which increases the total number of shares and can reduce the percentage holding of existing shareholders. The warrants convert only if the holders exercise them within the 18-month tenor, in one or more tranches. The larger authorised capital gives headroom for these shares to be issued. Shareholders will vote on both proposals at the EGM.

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