South West Pinnacle Exploration Limited, a prominent player in the Indian exploration sector, has received in-principle approval from both the National Stock Exchange of India Limited (NSE) and the Bombay Stock Exchange (BSE) for the issuance of 28,11,611 equity shares and 28,21,411 share warrants to the promoter and non-promoter categories of members. This approval, dated February 7, 2025, comes as part of the company’s strategic efforts to raise capital on a preferential basis.

NSE and BSE Approval for Capital Raise

In a significant corporate development, South West Pinnacle Exploration has now secured approvals from two major stock exchanges, namely NSE and BSE, for the proposed issuance. This move comes as part of the company’s ongoing efforts to enhance its capital base and fund further growth initiatives in the exploration sector.

According to the official letters from both exchanges, the approval has been granted subject to a set of specific conditions that must be adhered to before the allotment of the equity shares and share warrants. These conditions include timely filing of the listing application and compliance with all statutory requirements as mandated by SEBI, RBI, and the Companies Act.

Breakdown of the Proposed Issue

The company plans to issue a total of 56,33,022 securities — 28,11,611 equity shares to non-promoters and 28,21,411 share warrants that can be converted into equity shares in the future. This move aims to attract investment from both internal and external investors, further bolstering the company’s position in the market.

Compliance with SEBI Regulations

The approval from NSE and BSE is in line with the regulations set forth under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company must fulfill all necessary conditions outlined by the exchanges before the allotment can proceed.

A key condition emphasizes strengthening internal controls to monitor trades executed by the allottees in the company’s scrip. In particular, South West Pinnacle Exploration must ensure that no intra-day trading or sale of shares occurs before the official allotment date. Furthermore, the company has been advised to obtain undertakings from the allottees confirming compliance with the applicable SEBI (ICDR) Regulations, including ensuring that all conditions regarding allotments and trades are strictly adhered to.

Next Steps and Expectations

With the in-principle approval in hand, South West Pinnacle Exploration will proceed with the required next steps for the allotment of shares and warrants. The company is expected to file the necessary listing application with NSE and BSE post-allotment, ensuring that all guidelines and statutory approvals are in place for a smooth and compliant process.

As part of the due diligence, the company has been reminded of its responsibility to verify the information provided by the allottees and ensure that the process remains in full compliance with SEBI regulations. Any non-compliance could potentially impact the listing of the shares on the exchanges.

Conclusion

This approval marks a pivotal moment for South West Pinnacle Exploration as it moves forward with its plan to raise capital through a preferential issue of equity shares and share warrants. The capital raised from this initiative is expected to play a crucial role in the company’s expansion plans and efforts to strengthen its position in the exploration industry.

Investors, stakeholders, and the broader financial community will closely monitor how the company navigates this process and ensures compliance with all regulatory requirements. South West Pinnacle Exploration remains committed to transparency and good corporate governance throughout the process.

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