Key Quantitative Figures

  • Number of warrants converted: 86,00,000
  • Conversion price: ₹50 per share (₹10 face value + ₹40 premium)
  • Total conversion value: ₹43,00,00,000 (₹43 crores)
  • Warrant subscription price (paid upfront): ₹12.50 per warrant (25%)
  • Warrant conversion exercise price: ₹37.50 per warrant (75%)
  • Premium amount: ₹34,40,00,000 (₹40 premium × 86,00,000 shares)
  • Pre-conversion paid-up equity capital: ₹23,31,98,610
  • Post-conversion paid-up equity capital: ₹31,91,98,610
  • Promoter & promoter group holding post-conversion: 1,92,59,879 shares (60.34% of enhanced paid-up capital)

Parties Involved

  • Modern Dairies Limited (issuer company)
  • Six allottees belonging to Promoters & Promoter's Group
  • Allotment Committee of Directors (approval authority)
  • BSE Limited (stock exchange)
  • Shruti Joshi, Company Secretary (signatory)

Capital Structure Impact

  • Significant expansion of paid-up equity capital from ₹23.32 crore to ₹31.92 crore
  • New shares rank pari-passu with existing equity shares
  • Premium of ₹34.40 crores transferred to Reserve & Surplus account
  • Promoter holding increased to 60.34% of enhanced paid-up capital

Stated Rationale & Impact

  • Strengthening company's financial position and capital base
  • Expected to result in better operational performance and future improvement