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Lead Reclaim and Rubber Products Limited has announced the allotment of 7,88,187 fully paid-up equity shares following the conversion of outstanding equity share warrants. The allotment was approved by the company's Board of Directors at its meeting held on October 30, 2026. The shares have been allotted at an exercise price of ₹75 per share, with a face value of ₹10 each.

The latest development represents the conversion of previously issued preferential warrants into equity shares. A total of 14 investors exercised their rights under the warrant arrangement and received equity shares against the warrants surrendered for conversion. The company disclosed that the allotment was completed in accordance with the terms of the earlier preferential issue.

The conversion has resulted in an increase in the company's paid-up equity share capital. Following the allotment, the paid-up capital of Lead Reclaim and Rubber Products stands at ₹10,52,32,500, divided into 1,05,23,250 equity shares of ₹10 face value each.

The company informed the National Stock Exchange of India Limited about the board's decision under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure also includes details of the investors, the number of warrants converted, the exercise price and the shares allotted to each investor.

This development is relevant for shareholders and market participants because it provides information about the company's capital structure, the completion of a preferential warrant conversion and the participation of existing warrant holders in the equity share capital.

Board approves allotment of 7,88,187 equity shares

The Board of Directors of Lead Reclaim and Rubber Products Limited considered and approved the allotment of 7,88,187 equity shares at its meeting on October 30, 2026. These shares were issued upon the conversion of outstanding equity share warrants into fully paid-up equity shares.

Each equity share carries a face value of ₹10 and has been allotted at an issue price of ₹75. The allotment was made on a preferential basis to the investors who exercised their conversion rights under the warrant arrangement.

The company has confirmed that the newly allotted equity shares will rank pari passu with its existing equity shares in all respects. This means that the new shares will carry the same rights and obligations as the existing shares of the company, subject to applicable laws and the company's governing documents.

The pari passu status is an important part of the allotment disclosure. It indicates that the newly issued shares are not being placed in a separate class with different equity rights. They will form part of the company's ordinary equity share capital and will rank equally with the existing equity shares.

The board meeting commenced at 10:00 a.m. and concluded at 10:20 a.m. on October 30, 2026. The company subsequently communicated the outcome to the National Stock Exchange of India Limited for its records and for information to investors.

The allotment is not described as a fresh public issue. It is the conversion of warrants that had already been issued through a preferential allotment. Therefore, the latest announcement should be understood as the completion of the equity conversion process for the warrants exercised by the participating investors.

Financial value of the warrant conversion

The company has allotted 7,88,187 equity shares at ₹75 each. Based on the disclosed number of shares and the exercise price, the total value of the allotment is approximately ₹5.91 crore.

The calculation is as follows:

The total consideration of ₹5,91,14,025 represents the full exercise value of the 7,88,187 warrants converted into equity shares.

The warrant structure involved two payment stages. Investors initially paid ₹18.75 per warrant at the time of allotment of the warrants. The remaining ₹56.25 per warrant was payable when the investors exercised their conversion rights and applied for equity shares.

The latest board-approved allotment followed receipt of the conversion-stage payment. The company has specifically disclosed that the warrant exercise price was ₹75 per warrant, consisting of the initial payment and the remaining payment at the time of conversion.

The amount of ₹5.91 crore is the aggregate value calculated using the full exercise price of ₹75 per warrant. The amount received at the conversion stage is calculated at ₹56.25 for each of the 7,88,187 warrants exercised.

This distinction is important when understanding the financial impact of the transaction. The full issue price should not be confused with the amount received only at the conversion stage. The initial warrant payment had already been collected under the earlier allotment arrangement.

Understanding the preferential warrant conversion

A warrant is a financial instrument that provides its holder with the right to subscribe to a specified number of equity shares at a predetermined price, subject to the terms and conditions of the issue. In this case, each warrant carried the right to subscribe to one equity share of Lead Reclaim and Rubber Products Limited.

The warrants had been issued through a preferential allotment. The investors received the right to acquire equity shares by paying the agreed exercise price in accordance with the warrant terms.

The conversion process involved two stages of payment:

First stage: Initial warrant payment

At the time of allotment of the warrants, investors paid ₹18.75 per warrant. This represented the initial portion of the total exercise price of ₹75.

Second stage: Payment at conversion

When investors decided to exercise their rights and convert the warrants into equity shares, they paid the remaining ₹56.25 per warrant. Following the conversion, the company allotted one fully paid-up equity share for every warrant exercised.

The combined payment of ₹18.75 and ₹56.25 resulted in a total exercise price of ₹75 per equity share.

The company has disclosed that the tenure of the warrants was not more than 18 months from the date of allotment. The warrants were therefore subject to a defined conversion period. Investors who exercised their rights within the applicable terms could receive equity shares by completing the required payment.

The October 30, 2026 announcement confirms the conversion of 7,88,187 outstanding warrants held by 14 investors. The allotment has resulted in the issuance of an equivalent number of equity shares.

The transaction is significant from a capital-structure perspective because warrants that were previously outstanding have now been converted into fully paid-up equity shares to the extent exercised in this allotment.

Details of the 14 investors participating in the conversion

Lead Reclaim and Rubber Products Limited has disclosed the names of the 14 investors who applied for conversion of their warrants. The disclosure provides the number of warrants originally allotted, the number held before conversion, the number applied for conversion, the conversion-stage payment and the number of equity shares allotted.

The details show that the conversion was not limited to a single investor. Several warrant holders exercised their rights, with the number of warrants converted varying across investors.

The following investor-wise information has been provided in the company's regulatory disclosure:

The company has disclosed that the number of equity shares allotted to each investor corresponds to the number of warrants converted by that investor. This is consistent with the stated conversion arrangement of one equity share for every warrant exercised.

The investor-wise details provide shareholders with visibility into how the warrant conversion was distributed among the participating holders. They also help investors understand the extent of participation by individual warrant holders in the preferential conversion.

The table reflects the investor information supplied in the company's disclosure. The aggregate allotment announced by the company is 7,88,187 equity shares.

Jayeshkumar B Patel converts the largest number of warrants

Among the 14 investors listed in the disclosure, Jayeshkumar B Patel converted the largest number of warrants. He applied for the conversion of 2,24,000 warrants, against which the company allotted 2,24,000 equity shares.

Before this conversion, he held 9,68,500 warrants, according to the investor-wise table. Following the conversion of 2,24,000 warrants, his remaining warrant holding was disclosed as 7,44,500.

The conversion-stage payment shown against his application was ₹1,26,00,000, calculated at ₹56.25 per warrant.

The participation of Jayeshkumar B Patel represents a substantial portion of the disclosed conversion. However, the warrant conversion should be assessed separately from any conclusion about the investor's overall shareholding or control in the company. The announcement provides warrant conversion details and does not, by itself, provide a complete post-allotment shareholding pattern.

Sadhana J Patel was another significant participant. She converted 1,99,500 warrants and received an equal number of equity shares. Her disclosed warrant holding after conversion became zero.

Several other investors also exercised their entire disclosed warrant balances. These included Manav Patel, Mina Rajendra Prajapati, Narmadaben Dahyabhai Patel, Barot Bony, Sandipkumar Dahyabhai Patel, Trusharbhai Natubhai Patel and Dhaval Rameshbhai Panchal.

The remaining warrant balances varied among investors who converted only a portion of their holdings. This indicates that not every investor exercised all the warrants held before conversion.

The investor-wise information is useful because it distinguishes between the number of warrants originally allotted and the number actually converted in the latest transaction. These two figures should not be treated as interchangeable.

Paid-up equity share capital increases to ₹10.52 crore

One of the most important outcomes of the allotment is the increase in the company's paid-up equity share capital.

Following the allotment of 7,88,187 equity shares, Lead Reclaim and Rubber Products Limited has reported paid-up equity share capital of ₹10,52,32,500.

The total paid-up capital is represented by 1,05,23,250 equity shares, each having a face value of ₹10.

The updated capital structure disclosed by the company is:

The increase in paid-up capital is directly linked to the conversion of warrants into fully paid-up equity shares.

The newly issued shares add to the total number of equity shares outstanding. As a result, the company's equity capital base has expanded.

It is important to distinguish between face value and issue price. The face value of each share is ₹10, while the issue price under the warrant conversion is ₹75. The difference of ₹65 represents the premium over face value.

For the 7,88,187 shares allotted, the nominal share capital represented by the face value is ₹78,81,870. The balance of the total issue consideration represents the premium component, calculated at ₹65 per share.

This distinction helps explain how the allotment affects the company's share capital and securities premium account. The paid-up equity share capital is calculated using the face value of the shares, not the full issue price.

Newly allotted shares will rank pari passu

Lead Reclaim and Rubber Products has confirmed that the equity shares issued upon conversion of warrants will rank pari passu with the existing equity shares.

The term pari passu means that the newly allotted shares will rank equally with the existing shares in the relevant respects. They will not have a separate or inferior status merely because they were issued through the conversion of warrants.

This is an important disclosure for existing shareholders because it clarifies the rights attached to the newly issued equity shares.

The shares will form part of the company's ordinary equity capital. Their treatment will be consistent with the applicable provisions governing the company's equity shares.

The pari passu statement also confirms that the allotment is an equity conversion rather than the creation of a different class of security. The newly allotted shares carry the same basic equity status as the existing shares, subject to applicable statutory and regulatory requirements.

For investors tracking the company's capital structure, the statement provides clarity about the nature of the securities issued in this transaction.

What the warrant conversion means for existing shareholders

The allotment of 7,88,187 additional equity shares increases the total number of shares in the company. This has implications for the ownership percentages of existing shareholders, depending on their individual holdings and whether they participated in the conversion.

When a company issues additional equity shares, the total equity share count increases. If an existing shareholder does not acquire additional shares, their percentage ownership may decrease as a result of the larger share base. This is commonly referred to as equity dilution.

In the present case, the new shares have been allotted to 14 investors following conversion of their warrants. The company's total paid-up equity share capital has consequently increased to ₹10.52 crore.

The extent of dilution for any particular shareholder cannot be determined solely from the allotment announcement. A complete assessment would require the relevant pre-allotment and post-allotment shareholding information.

For investors, it is therefore useful to consider the allotment alongside the company's latest shareholding pattern and other financial disclosures.

The conversion also brings the exercised warrants into the company's equity share capital. Warrants that have been converted are no longer outstanding to the extent exercised. Investors who did not exercise their entire warrant holdings may continue to hold the remaining warrants, subject to their applicable terms and tenure.

This is why the investor-wise disclosure is relevant. It shows which investors converted all their disclosed warrants and which investors retained a balance after the latest conversion.

The announcement provides information about the number of securities allotted and the resulting paid-up capital. It does not independently establish the company's future financial performance, business growth or expected share price movement.

Why the preferential allotment route matters

A preferential allotment is a method through which a company issues securities to selected investors or identified persons rather than offering them to the general public through a public issue.

In this transaction, the equity shares were issued to investors who already held warrants allotted through a preferential issue. The conversion was carried out according to the terms of those warrants.

The preferential route enables a company to raise capital from identified investors, subject to the applicable legal and regulatory requirements. In a warrant-based issue, investors may initially pay a specified portion of the issue price and pay the remaining amount when they exercise their right to receive equity shares.

For Lead Reclaim and Rubber Products, the disclosed exercise price was ₹75 per warrant. Investors paid ₹18.75 at the time of warrant allotment and the remaining ₹56.25 when applying for conversion.

The latest allotment therefore represents the conversion of the outstanding warrants exercised by the participating investors. The company has provided the relevant details under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

The regulatory disclosure helps ensure that market participants receive information about significant corporate developments that may affect the company's securities and capital structure.

Regulatory disclosure under SEBI Listing Regulations

The company submitted the outcome of the board meeting to the National Stock Exchange of India Limited under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Regulation 30 requires listed entities to disclose specified material events and information to stock exchanges. The objective is to provide timely information to investors and support transparency in the securities market.

The company has also provided the details required under Regulation 30 read with the SEBI circular dated July 13, 2023, bearing reference number SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123.

The disclosure covers the type of securities issued, the method of issuance, the number of securities allotted, the investors involved, the issue price and the conversion details.

It also confirms that the securities were issued upon the exercise of outstanding equity share warrants that had originally been allotted through a preferential issue.

The company has stated that the warrants carried a right to subscribe to one equity share per warrant. The conversion price was ₹75 per warrant, comprising the initial payment of ₹18.75 and the balance payment of ₹56.25 at conversion.

The company has further stated that the tenure of the warrants was not exceeding 18 months from the date of allotment. The shares issued upon conversion will rank pari passu with the existing equity shares.

The disclosure also records that cancellation or termination of the securities issuance proposal was not applicable.

These details provide investors with a formal record of the allotment and the terms under which the conversion took place.

Lead Reclaim and Rubber Products: Company background

Lead Reclaim and Rubber Products Limited is a Gujarat-based company. Its registered and factory address is located at 856/4, Sarali-Pithai Road, Village Pithai, Taluka Kathalal, District Kheda, Gujarat – 387630, India.

The company has provided its corporate identification number as U19201GJ2012PLC072513.

The company's regulatory communication identifies its business location as the registered and factory address. The name of the company indicates its association with reclaim and rubber products, while the allotment announcement itself focuses on its equity capital and warrant conversion.

For investors researching the company, the latest announcement is primarily a corporate action update. It does not provide a detailed operating review, production capacity, customer information, revenue figures, profit numbers or order book details.

Accordingly, the allotment should be interpreted in the context of the company's capital structure rather than as an announcement of a new business contract or operational expansion.

The company's website, as stated in its regulatory communication, is www.leadrubber.com. The company has also provided its corporate email address and contact number in the filing.

Important figures investors should track

The October 30, 2026 announcement contains several figures that are relevant for shareholders and market participants.

First, the company allotted 7,88,187 equity shares following the conversion of warrants. This is the number of new equity shares issued in the announced transaction.

Second, the exercise price was ₹75 per share, of which ₹18.75 had been paid at the time of warrant allotment and ₹56.25 was payable upon conversion.

Third, the total value of the allotment was ₹5,91,14,025, or approximately ₹5.91 crore.

Fourth, the conversion involved 14 investors. The investor-wise disclosure identifies the number of warrants converted and the shares allotted to each participant.

Fifth, the company's paid-up equity share capital increased to ₹10,52,32,500, represented by 1,05,23,250 equity shares of ₹10 face value each.

Finally, the newly allotted equity shares will rank pari passu with the company's existing equity shares.

Together, these figures provide a clear picture of the latest corporate action. They help investors understand the number of shares issued, the consideration involved and the resulting paid-up equity capital.

What investors should monitor after the allotment

Following the warrant conversion, investors may monitor the company's subsequent corporate disclosures and shareholding information to understand the impact of the allotment on ownership.

One important area is the post-allotment shareholding pattern. This can help investors identify how the ownership structure has changed after the issue of additional equity shares. The allotment announcement provides the number of shares issued to each warrant holder, but the complete ownership position should be assessed using the relevant shareholding disclosures.

Another area is the treatment of any warrants that remain unconverted. The investor-wise table shows that certain warrant holders retained balances after the latest conversion, while others converted all the warrants shown against their names. The future status of any remaining warrants will depend on the original issue terms and applicable tenure.

Investors may also examine the company's financial results, operating performance, cash flow position and business developments. The receipt of funds through warrant conversion is a capital-raising event, but it does not by itself indicate how effectively the funds will contribute to business performance.

The company's future financial results will remain important for understanding revenue growth, profitability, operating margins, working capital requirements and financial stability.

Investors should also consider the effect of the increased equity share count when analysing per-share financial measures such as earnings per share. If the number of shares increases, the calculation of earnings per share will use the applicable weighted average number of outstanding shares for the reporting period.

The allotment announcement does not provide earnings forecasts or a valuation assessment. Therefore, investors should avoid drawing conclusions about the company's valuation or future stock performance from the share allotment alone.

Overall significance of the October 30, 2026 allotment

The allotment of 7,88,187 equity shares marks an important capital-structure development for Lead Reclaim and Rubber Products Limited. The company has completed the conversion of warrants exercised by 14 investors at an issue price of ₹75 per share.

The transaction represents an aggregate issue value of ₹5.91 crore. The investors paid ₹18.75 per warrant at the initial allotment stage and the remaining ₹56.25 per warrant at the time of conversion.

As a result, the company's paid-up equity share capital has increased to ₹10.52 crore, comprising 1,05,23,250 equity shares of ₹10 face value each.

The newly allotted shares will rank pari passu with the existing equity shares. The company has disclosed the investor-wise conversion details and submitted the information to the National Stock Exchange of India Limited under the applicable SEBI listing regulations.

For shareholders, the key points are the increase in the total equity share count, the completion of the conversion for the warrants exercised, the amount involved in the allotment and the resulting paid-up capital.

The announcement provides transparency about the latest preferential warrant conversion. However, the long-term implications for the company will depend on its operating performance, financial position, utilisation of capital and future business developments.

In summary, Lead Reclaim and Rubber Products Limited has allotted 7,88,187 fully paid-up equity shares at ₹75 each to 14 investors following warrant conversion. The allotment is valued at ₹5.91 crore and has increased the company's paid-up equity share capital to ₹10.52 crore.