Akme Fintrade Announces Lapse and Forfeiture of 20 Lakh Convertible Warrants
Akme Fintrade (India) Limited has reported the lapse and forfeiture of 20,00,000 convertible warrants originally issued in a preferential allotment. The company confirmed that the upfront subscription amounts received from warrant holders have been forfeited as per the terms of the warrant agreement.The company had previously approved the allotment of 20,00,000 convertible warrants to non-promoter category shareholders. These warrants were issued under a preferential allotment and carried an issue price of Rs. 111/- each, including a face value of Rs. 10/-, amounting to a total aggregate amount of Rs. 22,20,00,000/-.
The terms established that warrant holders were required to receive 25% of the issue price upfront at the time of allotment. The balance 75% was payable upon exercising the warrants within an 18-month period from the date of allotment. This timeline concluded on or before July 29, 2026.
Since the company did not receive the outstanding 75% consideration from the warrant holders within the stipulated timeframe, the convertible warrants lapsed automatically after the exercise period expired.
Effective from July 30, 2026, the upfront subscription amount received at the time of allotment—which amounts to Rs. 5,55,00,000/-—stands forfeited. The company stated that, consequent to the lapse of these warrants, warrant holders no longer possess any rights or entitlement regarding conversion into equity shares.
The forfeiture pertains to the initial subscription amount received and will be retained by Akme Fintrade (India) Limited and properly accounted for in line with applicable accounting standards. Management confirmed that there will be no change in the paid-up share capital of the company due to this specific warrant lapse.
A detailed breakdown of the warrants, the forfeiture details, and the involved holders is provided below:
| Particulars | Details |
|---|---|
| Total Number of Warrants Originally Allotted | 20,00,000 |
| Issue Price Per Warrant | Rs. 111/- |
| Date of Allotment | January 30, 2025 |
| Tenure for Exercise | 18 months (up to July 29, 2026) |
| Number of Warrants Lapsed | 20,00,000 |
| Amount Forfeited from Upfront Subscription | Rs. 5,55,00,000 |
The lapse was confirmed across the following warrant holders:
| Name of Warrant Holder | Number of Warrants Lapsed | Amount Forfeited (25% upfront consideration) |
|---|---|---|
| Mr. Shubhash P Rathod | 10,00,000 | Rs. 2,77,50,000 |
| Mr. Saajan Subhash Rathod | 5,00,000 | Rs. 1,38,75,000 |
| Mr. Mayank Subhash Rathod | 5,00,000 | Rs. 1,38,75,000 |
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