Mahan Industries Ltd Announces Preferential Issue of Equity Shares and Convertible Warrants
Mahan Industries Limited has announced plans to raise funds through a preferential issue of equity shares and convertible warrants. The company's Board of Directors approved these measures during a meeting held on July 16, 2026.Preferential Issue of Equity Shares
The company intends to issue up to 3,200,000 fully paid-up equity shares on a preferential basis. These shares have a face value of ₹10 each and will be offered at an issue price of ₹12 each, which includes a premium of ₹2 per share. The total amount to be raised through this issuance is expected to reach up to ₹3,84,00,000.The proposed allottees for these shares are detailed below:
| Sr. No. | Name of Investor | Category | No. of Shares |
|---|---|---|---|
| 1 | Shah Nishil Sanjaykumar | Proposed Promoter | 2,200,000 |
| 2 | Niranjankumar Navratanmal Jain | Proposed Promoter | 1,000,000 |
| Total | 3,200,000 |
The acquisition of these shares represents 26% of the emerging voting share capital of Mahan Industries Limited. This substantial acquisition will result in a change of control for the company. Consequently, the transaction has triggered an obligation for the acquirers to make an open offer. Upon the completion of the open offer, the proposed allottees will be classified as Promoters of the company.
Issuance of Convertible Warrants
In addition to the equity share issuance, Mahan Industries Limited has approved the raising of funds through the issuance of up to 2,16,55,216 convertible warrants for cash. These warrants have a face value of ₹10 each and will be issued at an issue price of ₹12 each (including a premium of ₹2). The aggregate amount for this issuance is expected to not exceed ₹25,98,62,592.The details regarding the convertible warrants are as follows:
| Feature | Details |
|---|---|
| Total Number of Warrants | Up to 2,16,55,216 |
| Issue Price | ₹12 per Warrant (including ₹2 premium) |
| Conversion Ratio | 1 Warrant convertible into 1 Equity Share of face value ₹10 |
| Conversion Period | Convertible after 4 months and before 18 months from the date of allotment |
| Payment Terms | 25% upfront payment; 75% payable upon exercise of conversion option |
The warrants are to be issued to a group of proposed allottees including Promoters, Promoter Group, and Non-promoter Public Categories. If a warrant holder fails to exercise the conversion within the 18-month period from the date of allotment, the entitlement will lapse, and the upfront consideration paid by the holder will be forfeited.
Corporate Actions and Scrutiny
The company has scheduled an Extra Ordinary General Meeting (EGM) on August 15, 2026, at 11:00 A.M. at the registered office of the company to seek shareholder approval for these matters.To ensure a fair and transparent process, M/s. Dhandhara & Associates, Company Secretaries, has been appointed as the Scrutinizer to oversee the Remote E-Voting process for the upcoming Extra Ordinary General Meeting.
Stock Price Movement
Mahan Industries Ltd shares rallied 4.96% to settle at ₹11.63 at the close of trade on Monday. The stock climbed steadily from an intraday low of ₹11.08 to reach its high of ₹11.63.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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