Univastu India Limited, a prominent player in the Indian stock market, has recently announced the allotment of equity shares and convertible warrants on a preferential basis. This decision comes after thorough deliberation and approvals from the Board of Directors as well as the members during the Extra Ordinary General Meeting held in late 2024. This step aims to raise capital and is part of the company's strategic moves for the upcoming fiscal year.

Background and Approval Process

The Board of Directors' meeting held on 26th September 2024, along with the subsequent EGM approval on 23rd October 2024, paved the way for these allotments. In-principle approvals were granted by the National Stock Exchange of India (NSE) on 3rd January 2025, which allowed the company to proceed with this significant corporate move.

Details of Allotment: Convertible Warrants and Equity Shares

On 17th January 2025, the Board of Directors gave its final approval for the allotment of 6,83,000 convertible warrants at an issue price of Rs. 216 per warrant. This price is inclusive of the warrant subscription price of 25%, which amounts to Rs. 3,68,82,000. Each warrant allotted is convertible into a fully paid-up equity share of face value Rs. 10/-, further contributing to the company's long-term capital growth.

In parallel, the Board also approved the allotment of 6,30,990 equity shares on a preferential basis at a price of Rs. 216 per share, resulting in a total subscription amount of Rs. 13,62,94,000. These shares were allotted to a series of specified investors, which include prominent business entities and individuals.

Impact on Company’s Financial Position

This move significantly strengthens Univastu India's capital structure, offering a boost to its operations and expansion plans. The funds raised from this preferential allotment will likely provide a substantial liquidity infusion, further supporting corporate growth initiatives and potential investments.

The funds will be used in working capital requirements and other strategic business ventures, driving growth and creating long-term value for the company's stakeholders. This preferential allotment will also increase the market capitalization of Univastu India, attracting more investors in the coming quarters.

Compliance with SEBI Regulations

The allotment of equity shares and convertible warrants follows SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, as well as the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. This ensures transparency and aligns with the regulatory framework set by the Indian financial authorities, which is essential for maintaining investor trust and confidence.

Key Investors and Their Contributions

The preferential allotment was made to a wide array of investors, which include non-promoters such as Mr. Manish Grover, Mr. Pankaj Passi, and several others. For example, Mr. Manish Grover subscribed to 50,000 convertible warrants, contributing Rs. 27,00,000. These investors are considered important for the company's long-term growth trajectory, providing not only financial support but also strategic input in future endeavors.

Next Steps and Future Outlook

The company is now gearing up for the exercise of conversion options under the terms of these allotments. Once converted, these warrants will result in the issuance of equity shares, further enhancing the shareholder base and supporting future market performance. Univastu India continues to focus on expanding its business while adhering to best practices in corporate governance.

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