Kay Power and Paper Limited (formerly Kay Pulp and Paper Mills Ltd.) announced on October 6, 2025, the allotment of 97,50,000 equity shares following the conversion of convertible warrants previously issued to promoter and non-promoter investors. The Board of Directors approved the allotment in a meeting held on the same day, in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Allotment Details and Investors

The equity shares have a face value of Rs. 10/- each and were issued at an issue price of Rs. 30.10/- each, including a premium of Rs. 20.10 per share, as per SEBI ICDR pricing guidelines. The shares have been allotted to 16 investors, with the largest allotment going to Kay Nitroxygen Private Limited (Promoter Group) receiving 46,50,000 shares.

Other notable non-promoter investors include Aryan Malik (6,50,000 shares), BGP 11 Analytics Private Limited (16,00,000 shares), and various individuals, HUFs, and private entities, ensuring a broad distribution across promoter and non-promoter categories.

Impact on Paid-up Capital

Following this allotment, the paid-up equity capital of the company increased from Rs. 22.09 crore to Rs. 31.84 crore, now comprising 3,18,40,000 equity shares of Rs. 10/- each. All equity shares have been issued in dematerialized form and rank pari-passu with existing shares in all respects, ensuring uniform rights and privileges for all shareholders.

Shareholding Post Allotment

Post conversion, the promoter group and non-promoter investors have enhanced their shareholding stakes in the company. Kay Nitroxygen Private Limited now holds 73,00,000 shares (22.93%), up from 26,50,000 shares (12%), while non-promoter investors collectively increased their holdings in line with the preferential allotment. This move strengthens both capital base and investor confidence.

Regulatory Compliance

The allotment complies with SEBI LODR regulations and SEBI circular No. SEBI/HO/CFD/PoD2/CIR/P/2024/155 dated November 11, 2024. The details regarding the preferential allotment, conversion of warrants, and investor categorization have been disclosed to ensure transparency and regulatory adherence.

Strategic Significance

The conversion of warrants and subsequent equity allotment provides Kay Power and Paper with additional financial resources, strengthening the balance sheet and supporting future growth initiatives. By enhancing equity capital and diversifying shareholder base, the company positions itself for long-term strategic and operational flexibility.

The Board’s decision reflects Kay Power and Paper’s commitment to corporate governance, regulatory compliance, and enhancing shareholder value through structured capital raising mechanisms.

About Kay Power and Paper Limited

Kay Power and Paper Limited (CIN: L21099MH1991PLC061709) is engaged in power and paper manufacturing operations from its Satara-based facilities. The company focuses on sustainable and efficient industrial operations, delivering consistent value to shareholders while adhering to best practices in corporate governance.

With this equity infusion, Kay Power and Paper strengthens its financial position, prepares for growth-driven investments, and ensures enhanced shareholder participation across both promoter and non-promoter categories.

Join our Telegram Channel for Latest News and Regular Updates.

Start your Mutual Fund Journey  by Opening Free Account in Asset Plus.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.