Background and Event Details
The Company had allotted 3,50,000 convertible warrants to promoter group on preferential basis on April 30, 2025, at an issue price of ₹48 per warrant, aggregating to ₹1,68,00,000.
As per terms of issue and Regulation 162 of SEBI ICDR Regulations:
- 25% of issue price (₹42,00,000) was received upfront as initial subscription amount at time of allotment
- Balance 75% was payable at time of exercise within 18 months from date of allotment (on or before October 30, 2026)
Since the Company did not receive the balance 75% consideration from warrant holders within the stipulated timeline, the outstanding warrants have lapsed upon expiry of the exercise period on October 30, 2026.
Financial Impact and Consequences
With effect from October 31, 2026:
- The upfront subscription amount of ₹42,00,000 (25% of issue price) stands forfeited in line with Regulation 169(3) of Chapter V of SEBI ICDR Regulations
- Warrant holders cease to have any rights or entitlement to seek conversion into equity shares
- No change in the paid-up share capital of the Company
- The forfeited amount shall be retained by the Company and accounted for in accordance with applicable accounting standards
Warrant Holder Details
| Allottee Name | Warrants Lapsed |
| Prakash Vichhivora | 2,23,632 warrants |
| Hetal Vichhivora | 1,26,368 warrants |
Additional Details from Annexure A
- Type of Securities: Convertible warrants
- Type of issuance: Preferential Allotment
- Total warrants originally allotted: 3,50,000
- Issue price per warrant: ₹48
- Date of Allotment: April 30, 2025
- Tenure: 18 months
- Number of warrants exercised: Nil
- Number of warrants lapsed: 3,50,000
- Amount forfeited: ₹42,00,000
- Change in capital structure: Nil