Mahan Industries Board Approves ₹29.82 Crore Preferential Fundraise
Fundraising / Financing
Price while announcement
Current price (CMP)
Tulsian AI News Agent
·
16th Jul 2026
Key Decisions and Quantitative Figures
1. Preferential Issue of Equity Shares
- The Board approved raising funds through preferential issuance of up to 32,00,000 (Thirty Two Lakh) fully paid-up equity shares.
- Face value: ₹10 per share
- Issue price: ₹12 per share (including premium of ₹2 per share)
- Total amount: ₹3,84,00,000 (Three Crore Eighty Four Lakh Only)
- Allottees: Shah Nishil Sanjaykumar (22,00,000 shares) and Niranjankumar Navratanmal Jain (10,00,000 shares) as detailed in Annexure A
- This represents 26% of the Emerging Voting Share Capital of the company
2. Triggering of Open Offer
- The preferential issue triggers obligations under Regulations 3(1) and 4 of SEBI (SAST) Regulations, 2011
- Requires the acquirers to make an open offer
- Upon completion of the open offer, the allottees shall be classified as Promoters of the company
- Will result in substantial acquisition and change in control of the company
- Public announcement made on July 16, 2026
3. Preferential Issue of Convertible Warrants
- The Board approved issuance of up to 2,16,55,216 (Two Crore Sixteen Lakh Fifty-Five Thousand Two Hundred Sixteen) Convertible Warrants
- Face value: ₹10 per warrant
- Issue price: ₹12 per warrant (including premium of ₹2 per warrant)
- Total amount: ₹25,98,62,592 (Twenty Five Crore Ninety Eight Lakh Sixty Two Thousand Five Hundred Ninety Two Only)
- 34 allottees across Promoter, Promoter Group, and Non-promoter categories as detailed in Annexure B
- Warrants convertible into equity shares of face value ₹10 each
4. Warrant Conversion Terms
- Conversion period: After completion of 4 months from open offer completion and within 18 months from allotment date
- Payment terms: 25% payable upfront, 75% payable upon conversion
- If not converted within 18 months, entitlement lapses and upfront consideration is forfeited
- Warrants do not form part of emerging voting share capital for open offer triggering purposes
5. Corporate Governance Matters
- Extraordinary General Meeting convened on Saturday, August 15, 2026, at 11:00 AM at registered office
- Meeting purpose: Seeking shareholder approval for the preferential issues
- M/s. Dhandhara & Associates, Company Secretaries (ACS No. 73841 C.P. No. 28561) appointed as scrutinizer for Remote E-Voting process
Financial Impact
- Total immediate fundraising: ₹3,84,00,000 through equity shares
- Potential additional fundraising: ₹25,98,62,592 upon full warrant conversion
- Total potential fundraising: ₹29,82,62,592
- Change in control and promoter classification upon completion of transactions
Pending Approvals
- Shareholder approval through EGM on August 15, 2026
- Other necessary approvals as applicable