Lead Reclaim And Rubber Products Limited Allots Warrants and Completes Equity Share Issuance, Boosting Capital Base
Lead Reclaim And Rubber Products Limited has announced significant steps in its capital structure following a Board meeting where it approved the allotment of warrants and the subsequent issuance of equity shares. The company's paid-up equity share capital increased after these transactions were finalized.The Board approved the allotment of 34,60,500 Fully Convertible Warrants. These warrants give holders the option to convert them into fully paid-up equity shares of the company, each with a face value of Rs.10, at an issue price of Rs. 75/- per warrant (Warrant Issue Price). The conversion period for these warrants is set for a maximum duration of 18 months from the date of allotment.
In addition to the warrants, the company allotted 50,388 Equity Shares. These shares were allotted at a price of Rs. 75/- per share and are fully paid up upon conversion of the warrants into equity shares on a preferential basis to the investors. The Board stated that any additional allotment of equity shares after the completion of the offer period would be considered.
The successful allotment resulted in the company's Paid-up Equity Share Capital increasing to Rs. 8,69,10,630/-, representing 86,91,063 Equity Shares of face value Rs. 10/- each. The equity shares issued upon the conversion of warrants will rank pari-passu with all existing equity shares of the company.
Issuance Details and Investor Allocation
The issuance involved various securities types and investor categories. Key details regarding the allotment and share conversion are summarized below:| Particulars | Details |
|---|---|
| Type of Securities Issued (Warrants) | Fully Convertible Warrants, convertible into equivalent equity shares |
| Issuance Type (Warrants) | Preferential allotment |
| Warrant Issue Price | Rs. 75/- |
| Total Number of Investors (for issuance) | 31 |
Details concerning the Equity Shares issued upon exercise of the warrants confirm that a total of 50,388 Equity Shares were issued at the required rate. The issue price for these shares was set at Rs. 75/-, aggregating to 37,79,100/-.
The process involved Warrants being allotted with the right to subscribe at a rate of Rs. 75/- per warrant. Upon conversion, this fee was structured as Rs. 18.75/- at allotment time and Rs. 56.25/- at conversion time.
| Metric | Details |
|---|---|
| Equity Shares Issued (upon conversion) | 50,388 |
| Total Warrants Allotted | 34,60,500 |
A portion of the warrants was allotted to promoter and non-promoter investors. For example, Jayeshkumar B Patel was allotted 1000500 warrants as a Promoter, while Proex Advisors LLP received 100500 warrants as a Non-Promoter investor.
LRRPL Stock Price Movement
On Tuesday, shares of Lead Reclaim And Rubber Products Limited rallied significantly, settling at ₹90 after gaining 5.88%. The stock traded amidst a volume of 4,500 shares as it closed near its high of ₹92.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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