SGSMC Global Securities543263Preferential allotment

Board approves preferential issue of up to 1 crore fully convertible warrants at Rs. 106 each

Board approved a preferential issue of up to 1,00,00,000 Fully Convertible Warrants to non-promoter entities at Rs. 106/- per warrant, aggregating up to Rs. 1,06,00,00,000/-, for cash.

By ScoutQuest · Wed 14 Oct 2026, 6:51 PM IST · 2 min read

Warrants approved

up to 1,00,00,000 Fully Convertible Warrants

Issue price

Rs. 106/- per warrant

Aggregate amount

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

The board of SMC Global Securities Ltd met on Wednesday, October 14, 2026, from 5:40 pm to 6:30 pm, and approved a preferential issue of fully convertible warrants to non-promoter entities.

What the board approved

• Issue and allotment of up to 1,00,00,000 (One Crore) Fully Convertible Warrants
• Each warrant carries a right exercisable by the holder to subscribe to one Equity Share of face value Rs. 2/-
• Issue price: Rs. 106/- per warrant
• Aggregate amount: up to Rs. 1,06,00,00,000/- (Rupees Hundred and Six Crores), for cash
• Category of the proposed allottees: Non-Promoter
• Conversion into an equivalent number of equity shares within a maximum of 18 (Eighteen) months from the date of allotment

Who the warrants are proposed for

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

Other decisions at the same meeting

• A Share Issue Committee of the board was constituted to take all necessary actions in connection with the issue and to finalise or approve the relevant documents
• The draft notice for an Extra-Ordinary General Meeting was considered and approved, with the EGM scheduled for Friday, 6th November, 2026, to obtain members' approval for the proposed preferential issue

What a warrant means, in simple terms

A warrant is a right, not a share by itself. The holder pays for the warrant, and can later ask for one equity share against it at a price fixed in advance. Here, each warrant can be used to get one equity share of face value Rs. 2/- at Rs. 106/-, within 18 months of allotment.

Points to keep in mind

• The issue is for cash, and the total amount involved is up to Rs. 1,06,00,00,000/-
• The issue is subject to the approval of the members of the company and applicable regulatory authorities, so the process still has to go through the EGM and other approvals
• If the warrants are converted, up to 1,00,00,000 new equity shares would be issued, which would add to the equity share capital and the number of shares outstanding

A preferential issue of warrants to non-promoter investors at a fixed price can be seen as a step that brings in new shareholders and funds, while the eventual conversion would increase the number of equity shares. Whether the conversion happens depends on the allottees exercising the warrants within 18 months and on the approvals going through.

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