The Board considered and approved the conversion of 4,00,000 warrants held by Vachi Commercial LLP into 4,00,000 equity shares of face value ₹2 each. These warrants were originally allotted on January 31, 2025, on a preferential basis to this promoter group entity.
This conversion completes the original preferential allotment of 20,00,000 convertible warrants made on January 31, 2025. Out of these, 16,00,000 warrants had already been converted into equity shares prior to this action.
The conversion follows the special resolution passed by shareholders in the general meeting dated January 07, 2025, and the in-principle approval received from BSE Limited on January 29, 2025 (Letter No. LOD/PREF/MV/FIP/1756/2024-25).
Financial Impact and Capital Structure Change
Consequent to this allotment, the company's paid-up equity capital has increased from ₹6,27,06,000 (consisting of 3,13,53,000 equity shares of ₹2 each) to ₹6,35,06,000 (consisting of 3,17,53,000 equity shares of ₹2 each).
Payment Details
The company received 25% of the issue price of the convertible warrants from the allottees on January 30, 2025. Vachi Commercial LLP paid the balance 75% of the issue price on July 17, 2026, towards the conversion of the remaining 4,00,000 convertible warrants.
Shareholding Changes
Pre-conversion, Vachi Commercial LLP held 35,50,000 shares (11.32% holding) and 4,00,000 convertible warrants. Post-conversion, their holding increased to 39,50,000 shares (12.44% holding).
Warrant Terms
Each warrant was convertible into one equity share upon payment of ₹35.25 per warrant (representing 25% of the total consideration). The conversion right could be exercised during eighteen months from the date of allotment (January 31, 2025).
With this conversion, all 20,00,000 convertible warrants allotted on January 31, 2025, have been fully converted into equity shares, and no convertible warrants remain outstanding under this allotment.