Gennex Laboratories Limited, a prominent pharmaceutical company headquartered in Hyderabad, Telangana, has officially announced a significant corporate development following its Board meeting held on June 4, 2025. The Board of Directors approved the preferential allotment of 40,00,000 (forty lakh) equity shares to a member of the promoter group through the conversion of warrants. This allotment marks a strategic move in strengthening the company’s equity base and promoting investor confidence.

The shares were allotted at a price of INR 14.75 per equity share, representing the warrant exercise price as per the terms agreed upon earlier. This conversion and allotment process are fully compliant with the provisions under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, along with the latest SEBI circulars, which guide preferential issues and timely disclosures to the stock exchanges. The transparency of this process underlines Gennex Laboratories’ commitment to maintaining good corporate governance practices and upholding investor trust.

The warrants converted into equity shares were held by Premier Fiscal Services Pvt. Ltd., a member of the promoter group. Prior to this allotment, Premier Fiscal Services held 3,75,38,000 equity shares, representing 16.50% of the company's share capital. Post allotment, the holding has increased to 4,15,38,000 shares, accounting for 17.95% ownership, reflecting the increased stake and confidence by the promoter group in the company's future prospects.

This preferential issue strengthens the company’s equity position, providing it with additional capital that can be utilized for business expansion, operational enhancement, or other strategic purposes. The allotment was carried out after the receipt of the “Warrant Exercise Amount”, a mandatory prerequisite before issuing equity shares against warrants, ensuring adherence to legal and financial norms.

Gennex Laboratories Limited has made prompt disclosure of this corporate action to multiple stock exchanges including the Bombay Stock Exchange (BSE), Ahmedabad Stock Exchange, and Calcutta Stock Exchange, ensuring that shareholders and the investment community are kept informed in a timely and transparent manner. Such disclosures are vital for market confidence and regulatory compliance.

The company’s registered office located at ‘Akash Ganga’, Srinagar Colony, Hyderabad, continues to operate with a focus on maintaining high standards of production and compliance. The factory situated in IDA Bollaram, Sangareddy District, Telangana, contributes to the company’s robust manufacturing capabilities.

In summary, the Board meeting conducted on June 4, 2025, demonstrates Gennex Laboratories Limited’s proactive corporate governance and its strategy to reinforce the promoter holding via preferential allotment of shares through warrant conversion. The decision not only boosts the company’s equity base but also signals a positive outlook for shareholders and stakeholders in the pharmaceutical sector.

This announcement also reflects the company’s adherence to SEBI’s regulatory framework, providing confidence to investors and stakeholders through clear communication and regulatory compliance, further solidifying its market reputation.

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