Praveg Limited announced that its Board of Directors, at a meeting held on July 22, 2026, approved a preferential issue of equity shares and convertible warrants. This disclosure is made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The Board approved the preferential allotment of 8,33,700 equity shares of face value ₹10 each at an issue price of ₹275 per share. This component aggregates approximately ₹22.93 crore. The proceeds from this equity share issuance will be applied towards the conversion of an unsecured inter-corporate loan availed from Jhaveri Credits and Capital Limited. This conversion will reduce the company's outstanding debt.
Additionally, the Board approved the preferential issuance of 11,00,000 convertible warrants at an issue price of ₹275 per warrant, aggregating approximately ₹30.25 crore. All warrants are allotted to members of the Promoter and Promoter Group. The specific allotment is as follows:
- Mr. Harsh Patel: 3,00,000 Convertible Warrants
- Ms. Nupur Patel: 3,00,000 Convertible Warrants
- Ms. Zalak Patel: 3,00,000 Convertible Warrants
- Mrs. Kammalaben Patel: 2,00,000 Convertible Warrants
Each convertible warrant has a face value of ₹10 and is convertible into one fully paid-up equity share of the company in accordance with applicable laws and regulatory provisions.
The entire preferential issue, totaling approximately ₹53.72 crore, is subject to the approval of shareholders and other applicable statutory and regulatory approvals.
Stated Rationale and Impact
According to management commentary from Mr. Vishnukumar Patel, Chairman and Managing Director, the proposed issue strengthens the company's capital structure through the conversion of debt and augments its capital base. It is stated that this will enhance financial flexibility, improve the balance sheet, and support the company's long-term growth strategy of expanding its portfolio of eco-responsible hospitality destinations.