Board approves allotment of 6,00,000 convertible warrants at Rs. 37 each on preferential basis
Board approved allotment of 6,00,000 convertible warrants on preferential basis.
- Warrants Allotted
- 6,00,000 convertible warrants on preferential basis
- Issue Price
- Rs. 37 per warrant; face value Rs. 10 each
- Total Consideration
- Rs. 2.22 crore; Rs. 55,50,000 (25%) already received
Convertible warrants allotted on a preferential basis
The Board of Directors, at its meeting on Monday, October 12, 2026, approved the allotment of 6,00,000 convertible warrants on a preferential basis. The warrants go to two allottees — one promoter and one non-promoter — at an issue price of Rs. 37 per warrant, each warrant having a face value of Rs. 10.
- Number of warrants allotted: 6,00,000
- Issue price: Rs. 37 per warrant
- Conversion ratio: 1 warrant = 1 equity share
- Conversion window: within 18 months from allotment, in one or more tranches
- If the investor does not exercise within that period, the warrants lapse
Money received so far
Total cash consideration for the issue is Rs. 2.22 crore. The company has received Rs. 55,50,000, which is 25% of the total amount. The balance is to be received when the warrants are converted into equity shares.
Who is getting the warrants
- Kamlesh Keshavlal Lodhiya (Promoter): 3,50,000 warrants, with Rs. 32,37,500 received
- Jogiya Geetaben Dhirajlal (Non-promoter): 2,50,000 warrants, with Rs. 23,12,500 received
Shareholding before and after
Assuming full conversion of the warrants, the promoter's holding moves from 25,81,975 shares (42.77%) to 29,31,975 shares (39.88%), and the non-promoter allottee moves from 4,000 shares (0.07%) to 2,54,000 shares (3.46%).
How a retail investor can read this
- Fresh money reaches the company as and when the warrants are converted and the remaining consideration is received; the warrants may also lapse if not exercised within 18 months.
- Conversion increases the number of equity shares, so existing shareholders' percentage holding comes down. The update shows the promoter's stake easing from 42.77% to 39.88% assuming full conversion.
- The update states the issue price of Rs. 37 is not lower than the floor price determined for the preferential issue.
- A promoter subscribing to warrants indicates a promoter putting in money, though the equity shares come only on conversion.
The issue follows a special resolution passed at the Extra Ordinary General Meeting held on Monday, August 31, 2026 and receipt of In-Principal approval from BSE Ltd.
More numbers
- Convertible warrants allotted6,00,000 (Six Lakh)
- Issue price per convertible warrantRs. 37/-
- Face value per equity shareRs. 10/-
- Total cash consideration for the issueRs. 2,22,00,000/-
- Consideration amount receivedRs. 55,50,000/-
- Warrants allotted to promoter Kamlesh Keshavlal Lodhiya3,50,000
- Warrants allotted to non-promoter Jogiya Geetaben Dhirajlal2,50,000
- Conversion window from date of allotment18 months
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