Receives BSE 'in-principle' approval to issue 10,00,000 warrants on a preferential basis

Mitsu Chem Plast has received BSE's 'in-principle' approval to issue 10,00,000 warrants, convertible into 10,00,000 equity shares of face value Rs. 10/- each, at not less than Rs. 151/- per warrant.

Mon 12 Oct 2026

Warrants to be issued

10,00,000 warrants

Convertible into

10,00,000 equity shares of face value Rs. 10/- each

Issue price

not less than Rs. 151/- per warrant

What the company informed the exchange

Mitsu Chem Plast Limited has received an 'in-principle' approval from BSE Limited for the issue of 10,00,000 warrants to the Promoter and Non-Promoter category of the company on a preferential basis. These warrants are convertible into 10,00,000 equity shares of face value Rs. 10/- each, at an issue price of not less than Rs. 151/- per warrant.

What 'in-principle' approval means

It is the exchange's clearance for the proposed issue to go ahead. In its letter, BSE states that this 'in-principle' approval should not be construed as its approval for the listing of the said security, and that the company is required to separately comply with the requirements for listing.

How a warrant works, in simple terms

• A warrant is a right to be allotted an equity share later, on conversion.
• Until conversion, the allottee does not hold equity shares carrying voting rights.
• The issue is on a preferential basis, meaning it is offered to identified persons (here, promoters and non-promoters) rather than to the general public.
• When the warrants are converted, the number of equity shares in the company increases by the shares so allotted. This increase is what is commonly called dilution, since the same business is then divided among more shares.

Conditions BSE has set out

• The company is advised to obtain an undertaking from the allottee(s) confirming that they shall not do intra-day trading in the scrip of the company, or any sale in the scrip, till the allotment date of the security, as required under the SEBI (ICDR) Regulations.
• The responsibility and onus to verify this is solely on the issuer company.
• The company is advised to strengthen internal controls to monitor trades executed by the proposed allottees before allotment of securities.
• On allotment, the company is required to make a listing application without delay, with applicable fees, and comply with post-issue formalities.
• As per Schedule XIX - Para (2) of the ICDR Regulations and the SEBI circular dated June 21, 2023, the company shall apply for listing within twenty days from the date of allotment.
• BSE reserves the right to withdraw this 'in-principle' approval at any stage if the information submitted is found incomplete, incorrect, misleading or false, or if it contravenes any rules, bye-laws and regulations.

What to keep in view

• This intimation is about receipt of an approval to proceed. The issue and the allotment are separate, later steps.
• The price is stated as not less than Rs. 151/- per warrant, so it is expressed as a floor rather than a fixed figure.
• The update states that on allotment of convertible securities there would be automatic release of the excess lock-in period of pre-preferential holding of allottees by depositories, in compliance with the SEBI (ICDR) Regulations, 2018, without the requirement of any NOC by the exchange.
• What the warrants finally mean for existing shareholders will depend on the terms on which they are converted and allotted.

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