Taylormade Renewables Limited (TRL) has announced a significant decision by its Board of Directors during their meeting on February 27, 2025. The company approved the preferential issue of 2,50,000 fully convertible warrants to be allotted to its promoter, Neera D. Gor, for a total value of INR 8.30 Crores. These warrants are convertible into equity shares at a price of Rs. 332 per share, with each warrant representing the right to subscribe to one fully paid-up equity share of the company.

Preferential Issue of Warrants

This preferential issue aims to raise funds for the company’s operations, particularly to complete last-mile expenses at the Tarapur plant and facilitate the launch of new Build-Own-Operate (BOO) plants at Dahej and Sayakha. The issuance is in line with the company’s strategy to raise capital and enhance shareholder value, as the promoter has committed to investing a significant sum at a premium to the current market price, showing confidence in the company’s future prospects.

Details of the Issue

• The warrant issue price is Rs. 332 per warrant, which includes the face value of Rs. 10 per share.
• The allotment is exclusively to the promoter, Neera D. Gor, under a preferential issue basis, and all funds will be paid in cash.
• The conversion period for these warrants will extend up to 18 months, after which unexercised warrants will lapse.
• Once fully converted, the promoter’s stake in the company will increase from 6.28% to 8.11%.

Extraordinary General Meeting (EGM)

The company will convene an Extraordinary General Meeting (EGM) on March 27, 2025, to seek the approval of shareholders regarding the preferential issue. The Board of Directors has already approved the draft of the notice for the EGM, which will be submitted to the stock exchanges in due course.

Strategic Growth and Investments

The investment raised through this preferential issue is crucial for achieving key operational milestones, including the commencement of operations at the Tarapur plant in March 2025, which is expected to generate positive operating cash flows within the first quarter. Additionally, the funds will help with the planning and expenses related to the establishment of new BOO plants in Dahej and Sayakha.

The promoter investment underscores a strong commitment towards TRL’s business and its goal to generate shareholder value. The company’s strong focus on expansion, growth, and operational efficiency is supported by this strategic move, aimed at enhancing its market position.

Conclusion

The preferential issue of warrants reflects Taylormade Renewables’ dedication to expanding its business and strengthening its financial position. The upcoming EGM will provide shareholders an opportunity to approve the issuance, marking an important step in the company’s journey toward achieving sustainable growth and creating long-term value for stakeholders.

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