Key Revisions to Preferential Issue

Revised Issue Price

  • Warrant issue price increased from ₹81 to ₹84 per warrant
  • Premium component: ₹74 per warrant
  • Total consideration revised from ₹8.10 crore to ₹8.40 crore for 10,00,000 warrants
  • Each warrant convertible into 1 equity share of face value ₹10

Pricing Methodology

  • NSE considered for floor price determination due to higher trading volumes
  • Valuation report dated July 22, 2026 from CA S. Bhaskar (IBBI/RV/06/2019/12116)
  • Valuation approaches: Market Approach (₹83.869), Income & Cost Approach (₹82.65), Asset Approach (₹45.76)
  • Minimum price determined as ₹83.869 per warrant based on highest valuation approach
  • Final issue price of ₹84 exceeds regulatory minimum requirement

Revised Payment Terms

  • 25% payment (₹21 per warrant) required on allotment date
  • Balance 75% (₹63 per warrant) payable before conversion into equity shares
  • Conversion period: 18 months from allotment date
  • Full forfeiture of paid amount if not converted within 18 months

Objects of the Issue

  • Funding Greenfield API Manufacturing Facility at Yadgiri, Karnataka
  • Project cost: Approximately ₹300 crores
  • Land already acquired: 5 acres at Plot No. 540/20, Kadechur & Badiyal Industrial Area
  • Land premium: ₹236.5 lakhs (₹47.30 lakhs/acre)
  • Building cost: Approximately ₹11 crores
  • Environmental Clearance obtained from MoEF&CC (EC Identification No: EC25B2405KA5738522N)
  • Project currently at implementation stage

Utilization of Proceeds

  • 100% of issue proceeds (₹8.40 crore) allocated to API facility project
  • Tentative utilization timeline: By December 31, 2027
  • Interim deployment permitted with scheduled commercial banks
  • Funds received in tranches based on warrant conversion schedule

Shareholding Impact

Post-Issue Fully Diluted Shareholding Pattern (assuming 100% conversion):

  • Total shares: 1,79,20,872 (from 1,59,20,872 pre-issue)
  • Promoter holding: 90,97,182 shares (50.76% from 50.86%)
  • Indian promoters: 84,41,995 shares (47.11% from 46.74%)
  • Foreign promoters: 6,55,187 shares (3.66% from 4.12%)
  • Public holding: 88,23,690 shares (49.24% from 49.14%)

Proposed Allottee Holding:

  • Mr. Shailesh Siroya (Promoter)
  • Pre-issue: 27,45,459 shares (17.24%)
  • Post-issue: 37,45,459 shares (20.89% on fully diluted basis)
  • No change in promoter status or company control

Voting Process

  • Remote e-Voting period: July 10, 2026 (9:00 AM) to August 8, 2026 (5:00 PM)
  • Members who voted before corrigendum can modify votes by email to scrutinizer (parameshwar@vjkt.in) with copy to evoting@nsdl.com
  • Modification deadline: August 8, 2026, 5:00 PM
  • Scrutinizer to ensure modified votes are considered in final tally

Additional Information

  • Corrigendum forms integral part of original Postal Ballot Notice
  • All unchanged terms from original notice remain valid
  • Documents available on company website: www.balpharma.com
  • Compliance officer: Shreepada ML, Company Secretary (ICSI M No: A66681)