Board approves raising up to Rs.72,00,00,000 via convertible warrants to promoters
Sudarshan Pharma's board has approved raising up to Rs.72,00,00,000/- (Rupees Seventy Two Crores only) by issuing convertible warrants on a preferential basis to promoters Mr. Hemal Mehta and Mr. Sachin Mehta.
By ScoutQuest · · 2 min read
- Fund raise amount
- up to Rs.72,00,00,000/- (Rupees Seventy Two Crores only)
- Conversion ratio
- Each warrant converts into 1 equity share of face value Re.1/-
- Issue price basis
- to be determined as per Regulation 164 of the SEBI ICDR Regulations, 2018
The board of Sudarshan Pharma Industries Ltd met on 29th October 2026 and approved a proposal to raise funds by issuing convertible warrants on a preferential basis to two promoters of the company, Mr. Hemal Mehta and Mr. Sachin Mehta.
What the board approved
- A fund raise of up to Rs.72,00,00,000/- (Rupees Seventy Two Crores only) through the issue and allotment of convertible warrants.
- Each warrant is convertible into 1 equity share of face value Re.1/-.
- The issue is on a preferential basis, meaning the warrants are being offered to the named promoter allottees and not to the public at large.
- The warrants will be issued at a price to be determined as per Regulation 164 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
What a convertible warrant means
A warrant is not a share today. It is a right to be allotted an equity share against it, on the terms of the issue. So the money comes into the company in connection with the warrant, and the share count rises when the warrant is converted into equity shares.
What it could mean for existing shareholders
Because the allottees are promoters, conversion of the warrants would raise the promoters' stake in the company. At the same time, the total number of equity shares would increase, so the percentage holding of other shareholders would come down. That effect is called dilution. The size of the dilution depends on the number of warrants issued and the price finally fixed.
What still has to happen
- The company will seek approval of its shareholders at an Extraordinary General Meeting, and the notice for that EGM will be issued separately.
- The issue is also subject to the approval of regulatory and statutory authorities.
Points to note
- The update states the price is "to be determined as per Regulation 164", so the per-warrant price is set by that formula.
- The board meeting commenced at 7.00 pm and concluded at 10.00 pm.
- The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and follows the company's earlier communication dated 30th October 2026.
Also from Sudarshan Pharma Industries
Board approves proposal to issue up to 72,00,00,000 warrants to promoters on preferential basis
30 Oct 2026
Consolidated results for the quarter ended Sept 30, 2026
29 Oct 2026
Board meet on 29 October 2026 to consider and approve Q2/H1 results and a fund-raising proposal
26 Oct 2026
More numbers
- Fund raise approved via convertible warrants (maximum)Rs.72,00,00,000/-
- Face value per equity shareRe.1/-
- Equity shares per warrant on conversion1 (one) Equity Share
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