Eco Recycling Ltd Approves Preferential Allotment of 300,000 Convertible Share Warrants to Promoter Group
Eco Recycling Ltd announced the preferential allotment of 300,000 Fully Convertible Share Warrants (FCWs) to its promoter group. The Board of Directors approved the transaction on June 22, 2026.The allotment allows the promoters to receive these warrants, which are convertible into equity shares at a fixed price. The total consideration for the 300,000 warrants stands at Rs. 12,33,00,000.
Under the terms of the preferential allotment, each warrant is valued at an issue price of Rs. 411, which includes a premium of Rs. 401 over the face value of Rs. 10 per equity share. The warrants are scheduled to be exercised in tranches and may be converted into equity shares within 18 months from the date of allotment.
The allottees include Mr. Brijkishor Kishangopal Soni, Mrs. Aruna Brijkishor Soni, and Ecoreco Ventures Private Limited.
Financial details of the preferential allotment are summarized below:
| Allottee Category | No. of Warrants Allotted | Issue Price (Rs.) | Total Consideration (Rs.) | Upfront Consideration Received (25%) (Rs.) |
|---|---|---|---|---|
| Mr. Brijkishor Kishangopal Soni (Promoter) | 100,000 | 411 | 4,11,00,000 | 1,02,75,000 |
| Mrs. Aruna Brijkishor Soni (Promoter) | 100,000 | 411 | 4,11,00,000 | 1,02,75,000 |
| Ecoreco Ventures Private Limited (Promoter) | 100,000 | 411 | 4,11,00,000 | 1,02,75,000 |
| Total | 300,000 | 12,33,00,000 | 3,08,25,000 |
The warrants are being allotted in dematerialized form. Conversion Terms stipulate that each warrant can be converted into one equity share of Rs. 10 within a maximum period of 18 months upon payment of the balance 75% of the issue price. The allotment carries a lapse clause, stating that if the remaining 75% consideration is not paid within the 18-month period, the warrant will lapse and the initial 25% upfront amount will be forfeited.
The company noted that since it has allotted warrants that are yet to be converted into equity shares, there is no change in the paid-up equity share capital of Eco Recycling Ltd.
Stock Price Movement
Eco Recycling Ltd shares settled at ₹436.55, edging higher by 0.78% in today's trading session. The stock moved between its intraday low of ₹433.00 and the high registered at ₹442.90.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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