Systematic Industries544541Preferential allotment

Preferential allotment of 14,57,400 shares at INR 228/- each; H1 FY27 results approved

Allotted 14,57,400 equity shares at INR 228/- each, aggregating INR 33,22,87,200/-, on a preferential basis.

By ScoutQuest · Tue 3 Nov 2026, 6:13 PM IST · 3 min read

99.96%Shareholding acquired in Wire Brigade Industries

Shareholding acquired in Wire Brigade Industries: 99.96%.

Shares Allotted: 14,57,400 equity shares at INR 228/- each
Allotment Amount: INR 33,22,87,200/-
Stake Acquired: 99.96% of Wire Brigade Industries as wholly owned subsidiary

The board meeting covered two things at once: a preferential share allotment and the half-yearly financial results.

The allotment

14,57,400 equity shares of face value INR 10/- each, issued at INR 228/- per share, which includes a premium of INR 218/- per share.
Total amount: INR 33,22,87,200/-.
The shares went to 20 allottees in the Promoter Group and Non-Promoter categories, against cash and against consideration other than cash (share swap).
The single largest block, 9,42,600 shares, went to Veritas Industries Private Limited, a promoter-group company, settled by share swap rather than cash.

Effect on share capital

Paid-up equity capital moved from ~Rs. 22.33 crore made up of 2,23,31,242 equity shares of Rs. 10/- each to ~Rs. 23.79 crore made up of ~2.38 crore equity shares of Rs. 10/- each.

The share swap and Wire Brigade

As part of the non-cash consideration, the company acquired 9,996 equity shares of Wire Brigade Industries Private Limited, representing 99.96% shareholding.
With this, Wire Brigade Industries Private Limited becomes a wholly owned subsidiary.
The transaction is with M/s. Veritas Industries Private Limited, a promoter-group related party.

How the issue proceeds are proposed to be used (in lakh)

Working capital requirements: 1,244.02
Acquisition of Wire Brigade Industries Private Limited (WBIPL) equity: 2,149.14
Acquisition of WBIPL equity shares for cash: 0.86
Total: 3,394.02

This utilisation is stated against proceeds of INR 33,94,00,800/-. The board approval on September 8, 2026 was for up to 1,488,600 equity shares at INR 228 each, aggregating up to INR 33,94,00,800/-, approved by shareholders through a special resolution at the Extra-Ordinary General Meeting held on October 1, 2026, with in-principle approval received from BSE Limited on October 22, 2026. The allotment now made is 14,57,400 shares for INR 33,22,87,200/-.

Half-year results (standalone, unaudited, in lakh)

Revenue from operations: 31,136.30; other income: 94.35; total income: 31,230.65
Total expenses: 29,530.18
Profit before tax: 1,700.48; profit for the period: 1,275.43
Basic and diluted earnings per share: 5.71 each
In the same half of the previous year: revenue from operations 25,368.10, total income 25,579.25, profit for the period 928.48, earnings per share 5.52

The statutory auditors issued a limited review report on these results with unmodified conclusions.

What this means for a retail shareholder

With 14,57,400 new shares issued, the total number of shares has gone up, so every existing share now represents a slightly smaller slice of the company.
A large part of the payment was not cash but shares of Wire Brigade, so the company has added a wholly owned subsidiary along with the new equity.
The company has stated how it plans to use the issue proceeds, mainly working capital and the Wire Brigade acquisition, which is the yardstick to track later.
The allotment price of INR 228/- per share, the premium of INR 218/-, and the exact share counts above are the figures to compare against the company's own disclosures.

In short, the update records a completed preferential allotment that expands the shareholder base and brings in a new subsidiary, alongside a half-year result where revenue, total income and profit for the period are all higher than the corresponding half of the previous year.

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