MCMangal Credit and Fincorp505850Preferential allotment

Board approves allotment of 25 lakh convertible equity warrants at Rs. 247 each

Board approved allotment of 25 lakh convertible equity warrants on a preferential basis at ₹ 247/- each, totalling ₹ 61.75 crore.

By ScoutQuest · Mon 19 Oct 2026, 5:47 PM IST · 2 min read

Warrants Allotted

25 lakh convertible equity warrants on a preferential basis

Issue Price

₹ 247/- each, totalling ₹ 61.75 crore

Upfront Payment / Tenure

25% paid upfront = ~₹ 15.44 crore; warrants valid 18 months

What the board approved

• The Board of Directors, by resolution passed through circulation, approved the allotment of 25 lakh (Twenty Five Lakh) convertible equity warrants on a preferential basis.
• The allotment is to persons belonging to the 'Promoter' and 'Non-Promoter' category, at an issue price of ₹ 247/- per warrant.
• The price includes a face value of ₹ 10/- per warrant.
• Each warrant carries a right that lets the holder subscribe to one equity share of face value ₹ 10/- each, so the warrants convert into an equivalent number of equity shares.

Money involved

• Total consideration for the 25 lakh warrants is ₹ 61.75 crore.
• 25% of the total consideration, that is ~₹ 15.44 crore, has been paid upfront for subscription of the warrants.
• The remaining 75% would come in at the time of exercising the warrants.

Who receives the warrants

• There are 6 (Six) allottees in all.
• Five of them are individuals in the Promoter category and one is in the Non-Promoter category.
• A large part of the issue is therefore going to people who already belong to the promoter group, with one outside investor also participating.

Tenure and conversion

• The warrants have a validity of 18 months from the date of allotment.
• Any request for conversion of the warrants will be intimated to the stock exchanges when it is received.
• The board approval follows the enabling approval of shareholders at the 64th Annual General Meeting held on September 22, 2026, and the 'In-Principle' approval granted by BSE Limited and National Stock Exchange of India Limited on October 6, 2026.

How to read this

• A preferential allotment of warrants brings in fresh money now (the 25% upfront) and more money later, if and when the warrants are converted.
• Conversion adds new equity shares, so the total number of shares will rise and existing shareholders' holding will be a smaller percentage of a larger share base. That is the dilution effect to keep in mind.
• Because most of the allottees are promoter-category individuals, the promoter group's shareholding can rise on conversion, even though the fresh shares are issued at a price that was set in advance.
• The 18-month validity means conversion is not immediate; the share capital changes only when the holders ask for conversion and the shares are allotted.
• Whether this is seen as a positive depends on the reader's view of fresh capital coming into the company versus the dilution it creates.

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.

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