Magson Retail and Distribution Limited conducted its Board Meeting on October 04, 2025, at its registered office in Ahmedabad, Gujarat. The meeting concluded with two important decisions that will reshape the company’s shareholding pattern and strengthen its capital structure.

The Board considered and approved the reclassification of a promoter group shareholder to the public category and also approved the allotment of equity shares following the conversion of warrants. These steps were taken in line with the compliance requirements under SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

Reclassification of Promoter Group to Public

One of the major outcomes of the meeting was the approval of reclassification of Yash Ketan Vimawala HUF from the Promoter and Promoter Group category to the Public category. This request was submitted earlier on September 01, 2025.

The Board reviewed the request under Regulation 31A of SEBI LODR Regulations. Since the shareholder held only 82,500 shares amounting to 0.8 percent of the voting rights, which is below the one percent threshold, the reclassification did not require shareholder approval.

This move ensures that the company remains aligned with SEBI’s framework, while also increasing public float and improving market liquidity. Such steps are seen positively by institutional investors as they reduce promoter dominance and enhance transparency.

Allotment of Equity Shares

The second resolution passed during the Board Meeting was the allotment of 4,60,208 equity shares to warrant holders who exercised their option of conversion.

In April 2025, the company had allotted 1.06 crore convertible warrants at a price of Rs 93.25 each, including a face value of Rs 10 and a premium of Rs 83.25. The warrant holders had initially paid 25 percent of the issue price, with the balance 75 percent payable at the time of conversion.

During this meeting, two entities opted for conversion:

• United Friends Ventures LLP (Promoter Group) converted 3,93,208 warrants into equity shares by paying Rs 2.74 crore.

• Moorari Infracom Ventures LLP (Non-Promoter) converted 67,000 warrants into equity shares by paying Rs 46.85 lakh.

The conversion resulted in the issue of 4,60,208 fully paid-up equity shares, raising Rs 3.21 crore for the company. The balance 82,14,792 warrants remain outstanding for conversion and can be exercised within 18 months from the original allotment date of April 17, 2025.

Impact on Share Capital

With the new allotment, the paid-up equity share capital of Magson Retail increased from 97,75,000 shares to 1,02,35,208 shares. The newly issued shares will rank pari-passu with existing shares in all respects including dividends and voting rights.

The company will now apply to the National Stock Exchange of India for listing and trading approvals of these new shares. Once approved, they will be tradable, adding to the liquidity of the stock.

Governance and Compliance

These corporate actions demonstrate Magson Retail’s commitment to corporate governance and compliance. The reclassification was carried out in accordance with SEBI regulations, and the disclosure norms as per SEBI circular of November 11, 2024, were followed.

The warrant conversion also indicates investor confidence in the company’s prospects. By raising additional funds through this mechanism, Magson Retail strengthens its financial position while providing shareholders with equity ownership.

Strategic Importance

The reclassification of promoters expands public shareholding, ensuring that the company maintains the required minimum public shareholding ratio. It also builds trust with investors who value reduced promoter control.

Meanwhile, the conversion of warrants adds fresh equity capital that can be used for growth initiatives, expansion of retail operations, and strengthening of distribution networks. The move signals confidence among warrant holders regarding the long-term future of the company.

Outlook

Magson Retail, known for its focus on gourmet, exotic, chilled, and frozen food products, continues to expand its presence in India’s evolving retail sector. With growing consumer demand for premium products, the company is well-positioned to capture opportunities in this niche market.

The steps taken in the October 04, 2025, Board Meeting reflect the company’s forward-looking approach. By enhancing governance standards and improving its capital structure, Magson Retail is laying a strong foundation for sustainable growth in the years ahead.

Conclusion

The Board Meeting held on October 04, 2025, marked a significant development for Magson Retail. By approving promoter reclassification and allotting more than 4.6 lakh equity shares, the company has reinforced its regulatory compliance, strengthened capital base, and improved public shareholding.

These measures will positively impact investor confidence and help Magson Retail continue its journey as a trusted player in the Indian retail distribution space.

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