SGSMC Global Securities543263Preferential allotment

Board approves preferential issue of up to 1,00,00,000 fully convertible warrants

Board of Directors approved a preferential issue of up to 1,00,00,000 (One Crore) fully convertible warrants to non-promoter investors.

By ScoutQuest · Wed 14 Oct 2026, 6:54 PM IST · 2 min read

Warrants Approved

up to 1,00,00,000 (One Crore) fully convertible warrants

Issue Price

Rs. 106/- per warrant

Aggregate Issue Size

up to Rs. 1,06,00,00,000/- for cash

Board approves warrants on a preferential basis

The board of directors of the company, at its meeting held on Wednesday, October 14, 2026, approved the issue and allotment of up to 1,00,00,000 (One Crore) Fully Convertible Warrants to persons/entities in the Non-Promoter category, on a preferential basis. The proposal is subject to the approval of the members of the company and applicable regulatory authorities.

Who is proposed to receive the warrants

• Mahesh Kumar - up to 42,00,000 warrants
• SGS Fintech Private Limited - up to 33,00,000 warrants
• Open Advanced Technologies LLP - up to 25,00,000 warrants
• Total - up to 1,00,00,000 warrants

Terms of the issue

• Issue price: Rs. 106/- per warrant
• Aggregate amount: up to Rs. 1,06,00,00,000/- (Rupees Hundred and Six Crores only)
• Consideration: cash
• Each warrant carries a right to subscribe to one equity share of face value Rs. 2/-
• Conversion permitted within a maximum period of 18 months from the date of allotment

How a warrant works

A warrant is not a share yet. It is a right, bought at Rs. 106/- each, to later subscribe to one equity share. The shares come into existence only when the warrant holder exercises that right, and the update allows this at any time within 18 months of allotment. Until then, the holder holds a convertible instrument, not equity shares. The update also covers the position on lapse of the tenure of the instrument.

What the company did in the same meeting

• Constituted a Share Issue Committee of the board to take all necessary actions connected with the issue and to finalise and approve the relevant documents
• Considered and approved the draft notice for an Extra-Ordinary General Meeting of the members, scheduled for Friday, 6th November, 2026, to obtain approval for the proposed preferential issue

The board meeting commenced at 5:40 pm and concluded at 6:30 pm.

What a retail investor may watch

• The warrants are proposed to be issued to the Non-Promoter category, so the proposed allottees are not described here as promoters.
• The proposal is money coming in for cash, up to Rs. 1,06,00,00,000/-, if the full subscription and conversion happen.
• Because each warrant converts into one equity share, conversion would increase the number of equity shares in issue, by the number of shares actually issued on conversion.
• The sequence: board approval, then member approval at the EGM, then allotment, and conversion within up to 18 months.

The perception such news can create is that of a proposed capital raise. The size of the inflow, the issue price of Rs. 106/- per warrant and the conversion window are the points the update sets out.

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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