Praxis Home Retail Limited has announced the cancellation of 3 million warrants and the forfeiture of Rs. 12 crores after warrant holders failed to exercise the options within the conversion period. This decision was made following the expiry of the 18-month conversion window for the warrants that were allotted on a preferential basis in August 2023.

Details of Warrant Allotment and Cancellation

On August 3, 2023, Praxis Home Retail allotted 4 million warrants with the entitlement to subscribe to equivalent equity shares. The warrants had a face value of Rs. 5 each, priced at Rs. 16 per share, which included a premium of Rs. 11 per share.

Out of the total 4 million warrants, only 1 million warrants were exercised by a warrant holder who converted them into equity shares on October 15, 2024. The remaining 3 million warrants were not exercised within the specified conversion period, which ended on February 2, 2025. As a result, these warrants have lapsed, and the upfront payment of Rs. 16 crores made at the time of allotment has been forfeited.

Forfeited Amount and Impact on Capital Structure

The Rs. 12 crore forfeiture stems from the warrants that were not exercised, which belonged to Mr. Mathew Cyriac (who held 2.96 million warrants) and Mr. Naveen Jain (who held 400,000 warrants).

Despite the lapse and forfeiture, there is no change in the company’s capital structure, as the warrants were not exercised into equity shares. Thus, the company’s shareholding and equity base remain unaffected.

Details of the Warrant Cancellation

✔ Total Warrants Originally Allotted: 4 million
✔ Price per Share: Rs. 16 (inclusive of Rs. 11 premium)
✔ Warrant Holders:

• Mr. Mathew Cyriac – 2.96 million warrants
• Mr. Naveen Jain – 400,000 warrants
  ✔ Total Amount Forfeited: Rs. 12 crores
  ✔ Warrants Exercised: 1 million (converted into equity shares)
  ✔ Warrants Lapsed: 3 million (canceled due to non-exercise)

Company’s Next Steps

Although the lapse of the warrants results in a loss of Rs. 12 crores for the company, Praxis Home Retail continues to maintain its strategic direction in ensuring the success of future equity raising and capital management activities.

Conclusion

The cancellation of 3 million warrants and the forfeiture of the amount paid at the time of allotment marks a significant development in the company’s financial landscape. However, it has not led to any immediate changes in the capital structure. Investors and stakeholders will be monitoring any future developments from Praxis Home Retail regarding upcoming capital raising activities and potential corporate strategies.

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