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Board approves allotment of 10,00,000 fully convertible warrants on preferential basis at Rs. 151/- each

Board approved allotment of 10,00,000 Fully Convertible Warrants at Rs. 151/- each, aggregating Rs.15,10,00,000/-.

By ScoutQuest · Thu 22 Oct 2026, 4:05 PM IST · 2 min read

Warrants Allotted

10,00,000 Fully Convertible Warrants at Rs. 151/- each, aggregating Rs.15,10,00,000/-

Payment Terms

25% of the issue price received upfront; balance 75% payable on conversion within 18 months

Allottees

Two promoter allottees and one non-promoter allottee

What the board approved

• Allotment of 10,00,000 Fully Convertible Warrants on a preferential basis, each convertible into one equity share of face value Rs. 10/-.
• Issue price of Rs. 151/- per warrant, that is, face value of Rs. 10/- plus a premium of Rs. 141/-.
• The total issue size works out to Rs.15,10,00,000/- (Rupees Fifteen Crore Ten Lakh Only).
• The allotment follows shareholder approval dated September 09, 2026 and in-principle approval granted by BSE Limited on October 09, 2026.

How the money comes in

• An amount equal to 25% of the warrant issue price has already been received upfront.
• The balance 75% is payable by the warrant holder at the time of exercising the conversion option.
• The tenure of the warrants is up to 18 months from the date of allotment.
• Because the warrants are yet to be converted into shares, there is no change in the paid-up equity share capital of the company at this stage.

Who gets them

• Manish Mavji Dedhia (Promoter): 4,75,000 warrants, consideration received Rs. 1,79,31,250.
• Sanjay Mavji Dedhia (Promoter): 3,25,000 warrants, consideration received Rs. 1,22,68,750.
• Rikhav Securities Limited (Non-Promoter): 2,00,000 warrants, consideration received Rs. 75,50,000.
• Total number of investors: 3.

Where shareholding stands after full conversion

• Manish Mavji Dedhia: 16,74,720 shares (12.34%) before, 21,49,720 shares (14.75%) after.
• Sanjay Mavji Dedhia: 12,71,922 shares (9.37%) before, 15,96,922 shares (10.95%) after.
• Rikhav Securities Limited: nil before, 2,00,000 shares (1.37%) after.
• These post-issue percentages are calculated assuming full conversion of the warrants issued in the preferential issue.

Other conditions

• The warrants are being allotted in electronic form.
• The warrants allotted to promoters are subject to lock-in as per the provisions of the SEBI (ICDR) Regulations, 2018.
• The company will intimate the stock exchanges as and when the warrants are converted or lapse on expiry of the tenure.

What this means for retail investors

• This is a fund-raising exercise where a large part is coming from the promoter group, which is taking additional shares at Rs. 151/- per warrant.
• Only a quarter of the money has come in now; the rest depends on the allottees choosing to convert within 18 months. If they do not, the warrants lapse.
• Conversion will add 10,00,000 new equity shares, so existing shareholders' stake will be diluted to that extent at the time of conversion, not now.
• The promoter holdings shown after the issue rise, but only under the assumption that all these warrants are converted.

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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