<h1>Garnet International Completes Forfeiture of 27 Lakh Convertible Warrants</h1>
Garnet International Ltd has confirmed that the conversion window for its allotted convertible warrants has expired, leading to the lapse and forfeiture of all 27,00,000 unexercised warrants. The company plans to formally cancel these warrants and transfer the upfront consideration received into the Capital Reserve Account following a board meeting scheduled for August 14, 2026.
The allotment was conducted by the Board of Directors at its meeting held on February 10, 2025. A total of 27,00,000 Convertible Warrants were issued at an issue price of ₹131 per Warrant to both Promoter Group and Non-Promoter subscribers. The allotment was made based on the receipt of 25% upfront application money amounting to ₹8,84,25,000.
The tenure provided for converting these warrants into equity shares under SEBI (ICDR) Regulations, 2018, expired. As subscribers failed to pay the remaining 75% balance consideration within the stipulated timeline, all 27,00,000 warrants have lapsed and remain unexercised. Consequently, there is no change in the paid up share capital of Garnet International Ltd.
The company confirmed that the formal cancellation and forfeiture of the 27,00,000 unexercised warrants are scheduled for board approval on Friday, August 14, 2026. The upfront money received from these warrant holders amounting to ₹8,84,25,000 will be transferred to the Capital Reserve Account following the forfeiture process.
The details of the allotment and financial status are summarized below:
| Particulars | Details |
|---|---|
| Type of Securities and Issuance | Convertible Warrants under Preferential Issue |
| Total Warrants Allotted & Date of Allotment | 27,00,000 Warrants allotted on February 10, 2025 |
| Total Issue Size & Issue Price Per Warrant | ₹35,37,00,000/- (Issued at ₹131/- per Warrant) |
| Upfront Consideration Received & Amount Forfeited | ₹8,84,25,000/- (at ₹32.75 per Warrant) |
| Warrants Converted into Equity | 0 |
| Lapsed / Defaulted Warrants | 27,00,000 Warrants |
| Tenure of Warrants | 18 Months from Date of Allotment |
The company also noted that defaulting allottees will be ineligible for any preferential issue of the Company for one year commencing from the forfeiture date.
The details provided in Annexure A included a breakdown of the warrant holders, categorized by the Non-Promoter and Promoter Group. Key among those who received warrants were GVS Chemical Pvt. Ltd. and Mangal Savitri Bizcon Pvt. Ltd., both categorized under the Promoter Group.
Stock Price Movement
As of 11:50, shares of Garnet International Ltd are slipping after trading at ₹60.88, which represents a -0.83% change for the stock. The equity has traded within a relatively narrow intraday band, moving between a low of ₹59.72 and a high of ₹61.68.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.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.