Virtual Global Education534741Preferential allotment

Board approves preferential allotment of fully convertible warrants at Re. 1 per warrant

Board approved raising funds through a preferential allotment of fully convertible warrants.

By ScoutQuest · Wed 21 Oct 2026, 10:30 PM IST · 2 min read

14.87%Promoter group holding full conversion

Promoter group holding full conversion: 14.87%.

Issue price per warrant: Re. 1/- per warrant
Warrants and aggregate amount: Up to 42 crore warrants, aggregate Rs. 42,00,00,000/-
Promoter group stake on full conversion: 8.23% to 14.87%

On 21st October, 2026 the board approved a proposal to raise funds for the company's financial requirements through a preferential allotment of fully convertible warrants.
The covering letter refers to 40 crore warrants; the annexure sets out up to 42 crore warrants for an aggregate amount of Rs. 42,00,00,000/-.
Issue price is Re. 1/- per warrant, and the consideration is cash.

Each warrant carries a right to subscribe to 1 equity share of the company.
25% of the issue price is received as the subscription amount at allotment.
The right can be exercised in one or more tranches during the tenure.
Tenure shall not exceed 18 months from the date of allotment of the warrants. If a holder does not exercise within that period, the unexercised warrants lapse and the amount already paid stands forfeited by the company.

Shree Assets Reconstruction Limited: 10,00,00,000 warrants. Total (A): 10,00,00,000.

The table shows the outcome presuming full conversion of the warrants.

Promoters and Promoter Group: 4,66,06,012 shares, 8.23%, going to 14,66,06,012 shares, 14.87%.
Public: 51,95,57,686 shares, 91.77%, going to 83,95,57,686 shares, 85.13%.
Total: 56,61,63,698 shares, 100.00%, going to 98,61,63,698 shares, 100.00%.

The warrant count is large relative to the present base: the fully paid-up share count would rise from 56,61,63,698 to 98,61,63,698 if every warrant is converted, so the eventual equity base would be much bigger.
Money comes in stages: only the 25% subscription amount arrives at allotment, and the rest is payable on exercise, so the full Rs. 42,00,00,000/- is not received upfront.
The promoter group's holding in the company would move from 8.23% to 14.87% on full conversion, changing the voting weight of that group.
Any warrant that is not exercised within 18 months lapses, and the amount paid on it stays with the company.
Stated use of proceeds: meeting the financial requirements of the company.

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