Allotment of 3,25,18,900 convertible warrants on preferential basis

Embassy Developments Ltd has issued and allotted 3,25,18,900 convertible warrants on a preferential basis to Embassy Property Developments Private Limited, a promoter group entity.

Mon 12 Oct 2026

Warrants Allotted

3,25,18,900 convertible warrants on a preferential basis

Exercise Price

INR 111.51 per warrant, a premium of INR 109.51 over face value of INR 2 per share

Subscription Money Received

INR 90.65 crore, being 25% of aggregate exercise price

What was announced

Embassy Developments Ltd has issued and allotted 3,25,18,900 convertible warrants on a preferential basis to Embassy Property Developments Private Limited, a member of the Promoter and Promoter Group of the Company. The allotment was made on October 12, 2026.

Each warrant is convertible into an equivalent number of fully paid-up equity shares of the Company having a face value of INR 2 each.

The money involved

• Exercise price: INR 111.51 per warrant, which includes a premium of INR 109.51 per warrant over the face value of the equity shares
• Subscription money received: INR 90.65 crore, being 25% of the aggregate exercise price of the warrants
• Balance payable: 75% of the exercise price, to be paid by the warrant holder at the time of exercise

Terms of the warrants

• The warrants may be exercised in one or more tranches within a period of 6 months from the date of allotment
• The warrants and the equity shares allotted upon exercise are subject to lock-in in accordance with Chapter V of the SEBI ICDR Regulations
• Shareholder approval was accorded at the Annual General Meeting held on September 8, 2026, and in-principle approvals were received from BSE Limited and National Stock Exchange of India Limited on September 30, 2026

What it means for shareholders

• Until the warrants are exercised, there is no change in the issued and paid-up equity share capital of the Company. The equity shares come into existence only when the holder pays the balance and converts.
• The allotment is to a promoter group entity, so the subscription money of INR 90.65 crore comes into the Company at this stage, with the remaining 75% payable later at INR 111.51 per warrant.
• When the warrants are exercised, 3,25,18,900 new equity shares would be issued. Those shares would add to the total number of shares, which is what shareholders commonly call dilution. How much dilution occurs depends on how many warrants are exercised.

Points to track

• Whether the warrants are exercised within the 6-month window, in one or more tranches
• The payment of the balance 75% of the exercise price at the time of exercise, since the equity shares are issued only then
• The lock-in applicable to the warrants and to the equity shares allotted upon exercise, as per Chapter V of the SEBI ICDR Regulations

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.