On January 22, 2025, Gujarat Apollo Industries Limited announced the allotment of 11,70,000 convertible warrants to non-promoter entities under a preferential issue. This allotment follows the shareholder approval from the Extraordinary General Meeting (EGM) held on September 21, 2024, and in-principle approvals from both BSE Limited and National Stock Exchange of India. The warrants are priced at Rs. 292 per warrant (including a premium of Rs. 282 per equity share), aggregating to Rs. 34,16,40,000 (approximately Rs. 34.16 crore).

The company had previously received Rs. 8,54,10,000 as 25% of the subscription price of Rs. 73 per warrant, totalling the first tranche of the payment for the issue. These warrants are convertible into equity shares of Gujarat Apollo Industries at a conversion price of Rs. 219 per share, with a face value of Rs. 10 each.

Preferential Issue and Conversion Process

The warrants will be converted into fully paid-up equity shares within a period of 9 months from the date of allotment, in one or more tranches, based on the warrant holder’s decision. Upon conversion, the remaining 75% of the subscription price (Rs. 219 per warrant) will be payable, which will result in the issuance of equity shares for the total price of Rs. 292 per warrant.

Details of the Allotment and Investors

As detailed in the Annexure II of the disclosure, the warrants have been allotted to a diverse group of non-promoter investors, including individuals, HUFs (Hindu Undivided Families), and investment companies. The total number of warrants issued is 11,70,000, with an initial payment of Rs. 8,54,10,000 received from the investors.

Here are the investors involved in the allotment:

• Pankaj Prasoon And HUF: 3,45,400 warrants, Rs. 2,52,14,200
• Ashish Rameshchandra Kacholia: 1,72,000 warrants, Rs. 1,25,56,000
• Lalit Agrawal HUF: 60,700 warrants, Rs. 44,31,100
• Sharad Kanayalal Shah: 51,500 warrants, Rs. 37,59,500
• Upasi Paragbhai Shah: 51,500 warrants, Rs. 37,59,500
• Jyotivardhan Jaipuria: 60,300 warrants, Rs. 44,01,900
• Everest Finance & Investment Company: 1,71,500 warrants, Rs. 1,25,19,500
• Priyanka Amey Belorkar: 34,300 warrants, Rs. 25,03,900
• Amol Babulal Taori: 34,300 warrants, Rs. 25,03,900
• Endeavour Instrument Private Limited: 68,500 warrants, Rs. 50,00,500
• Endel Retail and Customer Care Private Limited: 51,500 warrants, Rs. 37,59,500
• Dipak Kanayalal Shah: 51,500 warrants, Rs. 37,59,500
• Anish Babulal Shah: 17,000 warrants, Rs. 12,41,000

Warrant Lock-In and Regulatory Compliance

In compliance with the SEBI (ICDR) Regulations 2018, the warrants and resulting equity shares will be subject to a lock-in period as prescribed under the applicable provisions of the regulations. The conversion of warrants into equity shares will contribute to the overall capital expansion and growth of the company.

This preferential issue will help Gujarat Apollo Industries raise necessary capital to fuel its business expansion, enhance shareholder value, and continue its strategic investments. The issue also aligns with the company’s goal to improve financial stability and growth prospects, enabling it to remain competitive in the market.

Conclusion

The decision to issue 11.7 lakh warrants demonstrates Gujarat Apollo Industries' commitment to shareholder growth and strategic financial planning. The company will continue to update the stock exchanges and investors on any developments regarding the conversion of the warrants into equity shares and the overall progress of the preferential issue.

For more Real-time Updates, Bookmark https://financesaathi.com

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.

Join our Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.