Board approves preferential issue of up to 5 lakh shares at ₹10/- to promoter group
Board met on Friday, October 23, 2026 and approved a preferential issue of up to 5 lakh fully paid-up equity shares of face value ₹10/- each at ₹10/- per share, aggregating up to ₹50 lakh, to promoter group allottees.
By ScoutQuest · · 2 min read
- Issue size
- up to 5 lakh fully paid-up equity shares of face value ₹10/- each at ₹10/- per share, aggregating up to ₹50 lakh
- Promoter stake change
- ~23.9 lakh shares (27.36%) to ~28.9 lakh shares (31.29%)
- Lock-in
- eighteen months
Board meeting outcome
Flora Corporation's board met on Friday, October 23, 2026 and approved two things: a preferential issue of equity shares to promoter group allottees, and an extra-ordinary general meeting to seek shareholder approval for it.
What is being issued
- Up to 5 lakh fully paid-up equity shares of face value ₹10/- each.
- Issue price is ₹10/- per equity share, at par, without any premium.
- Amount proposed to be raised: up to ₹50 lakh.
- The allottees belong to the existing Promoter Group, and the update states the allocation among them is broadly proportionate to their existing holdings.
How the shareholding changes
- Before the issue, the Promoter & Promoter Group held ~23.9 lakh equity shares, or 27.36% of the company.
- After the issue, it would hold ~28.9 lakh equity shares, or 31.29%.
- The number of publicly held shares stays the same, so the public shareholding percentage comes down even as the absolute number of public shares is unchanged. The update states the minimum public shareholding requirement continues to be complied with.
Control and takeover
- No change in control or in the management of the company, because the allottees are already part of the promoter group.
- No open offer obligation is triggered under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, as per the update.
Lock-in
- The shares proposed to be allotted are locked in for eighteen months from the date of trading approval.
- The allottees' entire pre-issue shareholding is also locked in from the relevant date for a defined period from the date of trading approval.
Use of the money
- To augment the long-term working capital requirements of the company and for general corporate purposes.
Next steps
- An EGM on Monday, November 23, 2026 at the registered office, seeking members' approval by way of a Special Resolution, along with the in-principle approval of BSE Limited.
- The issue is also subject to other statutory and regulatory approvals as may be required.
What a retail investor may note
- The company brings in fresh money of up to ₹50 lakh while the promoter group's stake rises from 27.36% to 31.29%.
- Since the shares are issued at par at ₹10/-, the transaction is at face value rather than at a premium.
- The allotment adds new shares, so existing holders' percentage stake in the company is diluted, even though the public shareholding in absolute number of shares does not change.
Also from Flora Corporation
Board to meet on October 23 to evaluate proposal to raise funds
19 Oct 2026
More numbers
- Amount proposed to be raised₹50,00,000/-
- Equity shares proposed to be issued5,00,000
- Issue price per equity share₹10/-
- Pre-issue promoter & promoter group holding (shares)23,89,670
- Pre-issue promoter & promoter group stake27.36%
- Post-issue promoter & promoter group holding (shares)28,89,670
- Post-issue promoter & promoter group stake31.29%
- Lock-in on allotted shareseighteen months
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