Medicamen Organics to Undertake Preferential Issue and Convert Promoter Loan into Equity
Medicamen Organics Limited announced details regarding a preferential issue of securities and the conversion of a portion of an outstanding unsecured loan. The company confirmed the details related to the proposed transaction, which is scheduled for shareholder approval.The company previously provided details of its outstanding loans, including an unsecured loan availed from Mr. Bal Kishan Gupta, a Promoter. The outstanding amount payable to Mr. Bal Kishan Gupta stood at INR 5,67,63,723.53 as of March 21, 2026. This amount was reported to stand at INR 5,65,32,809.53 as of March 31, 2026.
In connection with the ongoing transaction, the company noted that the balance outstanding amount payable to Mr. Bal Kishan Gupta is expected to reduce to INR 3,15,32,834.53, following the proposed conversion of a portion of the unsecured loan into equity shares.
The company is undertaking a preferential issue of securities, which is subject to requisite approvals. The total proposed transaction aims to raise INR 13,65,00,000.
A summary of the proposed preferential issue and the corresponding amounts is provided below:
| Allottee Name | Category | Securities Type | No. of Securities | Amount (INR) | Consideration Nature |
|---|---|---|---|---|---|
| Pradeep Kumar Jain | Non-Promoter | Equity Shares | 20,00,000 | 7,00,00,000 | Cash |
| Pradeep Kumar Jain | Promoter (Public) | Warrants | 10,00,000 | 3,50,00,000 | Cash |
| Bal Kishan Gupta | Promoter (Individual) | Equity Shares | 7,14,285 | 2,49,99,975 | Conversion of Loan into Equity |
| Bal Kishan Gupta | Promoter (Individual) | Warrants | 1,85,715 | 65,00,025 | Cash |
| Total | 13,65,00,000 | 13,65,00,000 | Total: 13,65,00,000 |
The proceeds from the preferential issue are expected to be utilized towards the business requirements of the company, including working capital requirements and general corporate purposes. The company clarified that, except for the conversion of the outstanding unsecured loan of Mr. Bal Kishan Gupta into equity shares, the funds raised from the preferential issue are not proposed to be utilized towards the repayment or prepayment of any existing borrowings or loan facilities.
MEDIORG Stock Price Movement
As of 11:09 AM, Medicamen Organics Limited shares are rallying, trading up 3.95% to reach ₹25 in the live market. The stock saw a solid traded volume of 4,000 shares during the session.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.