Ambo Agritec Limited, a listed agro-based company headquartered in Kolkata, West Bengal, has officially announced the successful conversion of 15,00,000 convertible warrants into fully paid-up equity shares, following a board meeting held on July 17, 2025. This development marks a significant move in the company’s capital restructuring process and equity infusion from promoters.

This conversion, which comes after the special resolution passed by shareholders on June 3, 2024, and the preferential allotment of warrants on June 20, 2024, is aligned with the provisions under the Companies Act, 2013 and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Warrants Converted at ₹30 per Share

The 15 lakh equity shares, each having a face value of ₹10, were issued at a conversion price of ₹30 per share, which includes a premium of ₹20 per share. The total amount received from the allottee, Mr. Umesh Kumar Agarwal (Promoter & Managing Director), amounts to ₹3.38 crore, being 75% of the total warrant issue price, which was paid at the time of conversion.

According to the company’s filing, 25% of the amount was already received at the time of initial subscription and allotment of the warrants. With this final tranche of 75%, the conversion was completed in compliance with regulatory requirements.

Revised Capital Structure Post-Conversion

With this allotment, the Issued, Subscribed and Paid-Up Share Capital of the company has increased from ₹15.48 crore to ₹16.98 crore, now comprising 1,69,83,160 fully paid-up equity shares of ₹10 each.

The capital structure now includes:

• Existing Equity Capital: ₹15,48,31,600 (1,54,83,160 shares)

• New Allotment: ₹1,50,00,000 (15,00,000 shares converted from warrants)

These newly issued equity shares will rank pari-passu with the existing shares, meaning they will have equal rights in terms of dividend, voting, and other shareholder entitlements.

Remaining Warrants Yet to be Converted

Following this transaction, the company still holds:

• 55,00,000 warrants with the Promoters, and

• 12,12,000 warrants with Non-Promoters,

that are yet to be exercised and converted into equity shares. The remaining warrant holders may choose to exercise their conversion rights as per the terms approved by shareholders and regulatory bodies.

The preferential allotment was part of a larger capital raising initiative aimed at strengthening the company’s equity base and supporting future growth initiatives, particularly in expanding operational capacities at its Mangalpur Industrial Estate facility in Ranigunj, West Bengal.

Corporate Background

Ambo Agritec Limited, formerly known as Ambo Agritec Private Limited, is engaged in agro-processing and allied industrial manufacturing. The company is based out of Chandra Kunj Building, Kolkata, with production operations in Burdwan, West Bengal. It is listed on the BSE under the scrip code 543678 and holds the CIN: L15419WB1994PLC064993.

The company’s leadership includes Mr. Umesh Kumar Agarwal, who serves as the Managing Director, and has been actively involved in the strategic direction and capital management of the business.

Regulatory Disclosures and Meeting Details

In compliance with SEBI Listing Regulations (Regulation 30), Ambo Agritec provided the necessary disclosures through a detailed Annexure-II, outlining:

• The type and number of securities issued,

• Mode of issuance (preferential allotment),

• Investor details (only one allottee – Mr. Umesh Kumar Agarwal), and

• Post-issue capital structure.

The board meeting to approve the warrant conversion commenced at 6:15 PM and concluded at 7:00 PM on July 17, 2025.

What This Means for Shareholders

This conversion indicates a strong promoter commitment and reflects confidence in the company’s future trajectory. The infusion of ₹3.38 crore strengthens the company’s balance sheet and potentially supports working capital or expansion requirements. Investors may interpret this as a positive signal as promoters continue to invest additional capital at a premium valuation.

However, it's worth noting that the conversion of remaining 67.12 lakh warrants (promoters and non-promoters combined), if exercised, would further dilute the existing shareholding base. Investors should watch for any further updates on warrant conversions, as they would impact the share capital and promoter holding patterns.

Conclusion

The conversion of 15 lakh warrants into equity shares by Ambo Agritec Limited is a significant milestone in the company's capital planning strategy. The move not only increases the paid-up capital but also underscores promoter confidence and supports long-term growth objectives. Investors and stakeholders will now await the timeline for the conversion of the remaining warrants and monitor how the additional funds are utilized in operations or strategic expansion.

Stay tuned for further regulatory filings or investor communication from the company in the coming quarters.

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