Praveg Limited's Board of Directors, at its meeting held on July 22, 2026, approved several resolutions related to a preferential issue of securities. The meeting commenced at 03:30 PM and concluded at 04:44 PM.
Key Board Approvals
1. Conversion of Unsecured Loan: Approved the exercise of option for conversion of unsecured inter-corporate loan into equity shares by Jhaveri Credits and Capital Limited. This is in terms of a Loan Agreement dated May 7, 2025, read with a Supplemental Agreement dated July 13, 2026.
2. Preferential Issue of Equity Shares: Approved the preferential issue of up to 8,33,700 equity shares of face value ₹10 each towards conversion of unsecured inter-corporate loan taken from Jhaveri Credits and Capital Limited. The issue price is set at ₹275 per share or such higher price as determined under SEBI (ICDR) Regulations, 2018.
3. Issuance of Convertible Warrants: Approved the issuance of 11,00,000 convertible warrants on a preferential basis to persons belonging to the Promoter and Promoter Group of the company. Each warrant is convertible into one fully paid-up equity share of face value ₹10 each. The issue price is ₹275 per warrant or such higher price as determined under SEBI (ICDR) Regulations, 2018.
4. EGM Approval: Considered and approved the draft Notice of Extraordinary General Meeting of members scheduled to be held on Friday, August 21, 2026, at the registered office of the company.
5. Scrutinizer Appointment: Appointed M/s. ALAP & Co. LLP (LLPIN: ACA-1561), Practicing Company Secretaries (FRN: L2023GJ013900), as scrutinizer to scrutinize the e-voting process.
Preferential Issue Details (Annexure A)
- Type of Securities: Equity Shares and Convertible Warrants
- Type of Issuance: Preferential Issue on a private placement basis
- Total Securities: 8,33,700 Equity Shares (by conversion of loan) + 11,00,000 Warrants (for cash)
Investor Details
- Equity Shares Allottee: Jhaveri Credits and Capital Limited (Category: Promoter Group - Corporate Body)
- Convertible Warrants Allottees (4 individuals, all Category: Promoter Group - Individual):
- Harsh Vishnubhai Patel
- Nupur Vishnubhai Patel
- Zalak Harsh Patel
- Kamlaben Vitthalbhai Patel
Shareholding Pattern Impact
- Pre-issue shareholding pattern as on July 17, 2026
- Pre-issue Promoters & Promoters' Group holding: 12,072,294 shares (46.17%)
- Post-issue Promoters & Promoters' Group holding: 14,005,994 shares (49.87%)
- The calculation is on a fully diluted basis, after giving effect to the proposed issue and assuming exercise of all 9,481 outstanding Employee Stock Options (ESOPs)
Financial Details
- Equity Shares Issue: 8,33,700 shares × ₹275 = Approximately ₹22.93 crore
- Warrants Issue: 11,00,000 warrants × ₹275 = Approximately ₹30.25 crore
- Total Issue Size: Approximately ₹53.72 crore
Warrant Conversion Terms
Each convertible warrant will be convertible into one fully paid-up equity share of face value ₹10 each, payable in cash. Conversion may be exercised in one or more tranches during the period commencing from the date of allotment until expiry of 18 months.
Conditions and Approvals
All approvals are subject to:
- Approval of members in the General Meeting
- Other statutory and regulatory approvals where necessary and applicable