Continental Securities Ltd Approves Conversion of 4,00,000 Warrants into Equity Shares
Continental Securities Ltd has approved the conversion of 4,00,000 convertible warrants held by Vachi Commercial LLP into equity shares. The warrants were originally allotted on a preferential basis to the promoter group allottee on January 31, 2025.The Board of Directors approved the conversion following the receipt of the remaining 75% of the issue price from Vachi Commercial LLP on July 13, 2026. The company had previously received 25% of the total consideration as application and subscription money in January 2025.
The transaction involves the conversion of 4,00,000 fully paid-up equity shares with a face value of ₹2 each. This conversion is part of a larger allotment of 20,00,000 convertible warrants originally issued on January 31, 2025. Of those initial warrants, 12,00,000 were previously converted into equity shares, leaving 8,00,000 outstanding. The current conversion represents a further 4,00,000 warrants from that remaining balance.
The issuance will result in an increase in the paid-up equity capital of the company. The following table outlines the change in capital and shareholding for Vachi Commercial LLP:
| Particulars | Pre-Conversion (Before) | Post-Conversion (After) |
|---|---|---|
| Paid-up Equity Capital | ₹6,19,06,000 | ₹6,27,06,000 |
| Number of Equity Shares | 3,09,53,000 | 3,13,53,000 |
| Vachi Commercial LLP Holding (Shares) | 31,50,000 | 35,50,000 |
| Vachi Commercial LLP Holding (%) | 10.18% | 11.18% |
The conversion rights were granted to warrant holders for a period of 18 months from the date of allotment. The company confirmed that it has received the full consideration required for the issuance, facilitating the conversion into equity shares.
Regarding the pricing of the warrants, the original allotment allowed for the subscription of one equity share per warrant upon payment of ₹35.25, which represented 25% of the total consideration. The subsequent receipt of ₹315.75 per warrant represents the remaining 75% of the total consideration.
Stock Price Movement
As of 10:40, Continental Securities Ltd shares are slipping to ₹11.75, down 4.00%. The stock is trading between an intraday low of ₹11.41 and a high of ₹12.79.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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