Simplex Castings513472Preferential allotment

BSE in-principle approval for preferential issue of ~44.91 lakh equity shares and ~50.05 lakh warrants

Simplex Castings has received BSE's in-principle approval for a preferential issue of ~44.91 lakh equity shares of Rs. 2/- each and ~50.05 lakh warrants convertible into ~50.05 lakh equity shares, each at a price not less than Rs. 105/-.

By ScoutQuest · Tue 3 Nov 2026, 6:19 PM IST · 3 min read

Equity shares approved: ~44.91 lakh equity shares of Rs. 2/- each
Warrants approved: ~50.05 lakh warrants convertible into ~50.05 lakh equity shares
Price floor: not less than Rs. 105/- per share or warrant

What the company informed the exchanges

Simplex Castings Ltd has received an 'in-principle' approval from BSE Limited through letter Ref: LOD/PREF/SS/FIP/1051/2026-27 dated November 03, 2026, for the issue of equity shares and warrants on a preferential basis. The company's intimation to the exchanges encloses a copy of that BSE letter.

What has been approved in principle

~44.91 lakh equity shares of Rs. 2/- each, at a price not less than Rs. 105/- each, to non-promoters on a preferential basis.
~50.05 lakh warrants convertible into ~50.05 lakh equity shares of Rs. 2/- each, at a price not less than Rs. 105/- each, to promoters and non-promoters on a preferential basis.

In simple terms, the first part is a direct issue of new equity shares. The second part is an issue of warrants, which are instruments that convert into equity shares at a later date. Both are being issued to a chosen set of investors rather than to the public, which is what "preferential basis" means.

What 'in-principle' approval does and does not mean

BSE's letter states that this approval should not be construed as its approval for listing of the securities, and that the company must separately comply with the requirements for listing. The exchange has also said the in-principle approval can be withdrawn at any stage if the information submitted is found to be incomplete, incorrect, misleading, false, or if it contravenes applicable rules and regulations.

The letter adds that the issue and allotment must be strictly in accordance with the Companies Act, 2013, the Securities Contracts (Regulation) Act, 1956, the SEBI Act, 1992, the Depositories Act, 1996, the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the listing agreement, and that other statutory approvals as required must also be obtained.

Conditions attached to the approval

The company must obtain an undertaking from the allottees that they will not do intra-day trading in the scrip or make any sale in the scrip till the allotment date of the security.
The responsibility to verify this and ensure compliance with Regulation 167(6) of SEBI ICDR Regulations, 2018 rests solely on the issuer company.
Non-compliances observed by the exchanges after the undertaking and verification may impact the listing of such shares.

Post-allotment steps the letter flags

On allotment, a listing application must be made without delay with applicable fees, in terms of Regulation 14 of the LODR Regulations, along with post-issue formalities.
Per Schedule XIX of the ICDR Regulations, the company must apply for listing to one or more recognised stock exchanges within twenty days from the date of allotment, and non-compliance will attract the fine mentioned in the SEBI circular dated June 21, 2023.
In case of allotment of convertible securities, there would be automatic release of the excess lock-in period of pre-preferential holding of allottees by the depositories, without a no-objection certificate from the exchange.

Why a retail shareholder may want to track this

A preferential issue adds new shares to the company's share count. The equity shares in this approval are 44,90,791, and the warrants, if converted, would add a further ~50.05 lakh equity shares of Rs. 2/- each. The price floor stated for both is Rs. 105/- per share or warrant, against a face value of Rs. 2/-. The actual allotment, the timing of conversion of the warrants, and the identities of the allottees are the details to watch as this moves from in-principle approval to allotment.

Also from Simplex Castings