NHC Foods Limited has successfully converted 4.4 crore convertible warrants into fully paid equity shares, reflecting a significant corporate action under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board of Directors, in its meeting held on 24th December 2025, approved the allotment following the exercise of options by the warrant holder. This conversion underscores NHC Foods’ commitment to strengthening its equity base while adhering strictly to regulatory compliance.

The equity shares allotted have a face value of Re. 1 each at an issue price of Rs. 1.25 per share, including a premium of Rs. 0.25, resulting in a total consideration of ₹4,12,50,000 for 4.4 crore shares. This allotment is part of a preferential allotment mechanism, specifically targeting a non-promoter investor, Satyam Shirishchandra Joshi, thereby enhancing the company’s capital structure and enabling potential growth and operational expansion.

Convertible warrants are financial instruments that provide the option to convert them into equity shares at a predetermined price within a specified time. In this case, the warrants were exercised by the investor, and the remaining 75% of the warrant exercise price—amounting to Rs. 0.9375 per warrant—was received in cash, resulting in the total capital infusion of ₹4.12 crore. The conversion process was executed on a 1:1 basis, meaning one equity share for every warrant exercised, resulting in the allotment of 4.4 crore fully paid-up shares.

The Board meeting that approved this allotment commenced at 1:00 PM and concluded at 1:30 PM, demonstrating efficient decision-making in line with corporate governance standards. The action also fully complies with the Schedule III Part A of SEBI regulations and relevant SEBI circulars dated September 9, 2015, and July 13, 2023. This ensures transparency and maintains the confidence of investors, shareholders, and the market.

This corporate action marks a significant step for NHC Foods, reflecting its ability to attract strategic investments from non-promoter stakeholders. The allotment of shares through preferential issue of convertible warrants provides the company with additional funds that can be utilized for business expansion, operational efficiency, and long-term growth strategies. By widening its shareholder base and increasing liquidity, NHC Foods positions itself for better engagement with the capital markets and future financial flexibility.

The investor, Satyam Shirishchandra Joshi, held 6.5 crore warrants before conversion and applied for conversion of 4.4 crore warrants, which have now been successfully allotted as equity shares. No warrants are pending for conversion, completing the process entirely. This clear and structured approach ensures regulatory compliance and demonstrates NHC Foods’ adherence to corporate governance and transparency norms mandated by SEBI.

Equity share allotments via convertible warrants are crucial for companies seeking to raise capital without immediate dilution of existing shareholder equity. NHC Foods’ conversion exemplifies a well-managed and legally compliant financial strategy that balances the interests of the company, investors, and the market. This allotment also highlights the company’s proactive approach to corporate finance, ensuring a seamless infusion of funds from non-promoter investors while maintaining accountability and disclosure standards.

In conclusion, the conversion of 4.4 crore warrants into fully paid equity shares by NHC Foods represents a pivotal move in the company’s growth trajectory. With a total capital infusion of ₹4.12 crore, this preferential allotment strengthens the company’s equity capital base, promotes investor confidence, and adheres fully to SEBI regulations. Such initiatives reflect NHC Foods’ strategic focus on sustainable financial management, investor transparency, and long-term corporate growth in the competitive Indian market.

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