Pakka Limited completes two major preferential allotments, raising funds through equity shares and convertible warrants
Pakka Limited announced significant capital structure updates after its Fund Raising Committee approved the allotment of both equity shares and fully convertible warrants. The company successfully raised substantial funds through the issuance of 27,20,000 equity shares on a preferential basis, while simultaneously allotting 77,00,000 Fully Convertible Warrants to investors belonging to the Promoters' Group Category.The allotment of equity shares was made at an issue price of INR 110/- per share, which included a securities premium of INR 100/- and a face value of INR 10/-. For these 27,20,000 equity shares allotted to non-promoter investors, the company received a total consideration of INR 29,92,00,000/-.
The infusion of capital resulted in an increase in the company's paid up capital from INR 44,94,81,000 to INR 47,66,81,000 following the allotment of equity shares.
Warrants Allotment and Future Capital Projection
Simultaneously, the company approved the allotment of 77,00,000 Fully Convertible Warrants. These warrants were issued at an issue price of INR 110/- each. The total potential value for these warrants was set at INR 84,70,00,000/-.The company received a cash upfront payment equivalent to 25% of the issue price per warrant, amounting to INR 21,17,50,000/- from investors in the Promoters' Group Category.
Each warrant is convertible into one fully paid-up equity share with a face value of INR 10/-. Upon conversion, allottees must provide the balance consideration of INR 82.50/- per warrant. Assuming full conversion within 18 months from the allotment date, the company's paid up capital could increase to INR 55,36,81,000.
Details of Allotments
The following table details the equity share allotment process and its impact on the company’s structure:| Particular | Equity Shares Allotted | Total Consideration Received | Post-Allotment Paid Up Capital (INR) |
|---|---|---|---|
| Value | 27,20,000 shares @ INR 110/- each | 29,92,00,000/- | 47,66,81,000/- |
The allotment of warrants is detailed in the table below, highlighting that the issue was restricted to a single Promoters' Group investor:
| Particular | Warrants Allotted | Issue Price (per warrant) | Upfront Payment Received | Post-Conversion Potential Capital (INR) |
|---|---|---|---|---|
| Value | 77,00,000 warrants | INR 110/- | 21,17,50,000/- | 55,36,81,000/- |
The equity shares allotted were distributed among four investors from the Non-Promoter category. Yash Agro Products Limited received 77,00,000 Fully Convertible Warrants out of the total allotment.
PAKKA Stock Price Movement
Shares of PAKKA LIMITED are edging higher in live trading, climbing 1.05% and reaching ₹81.04 as of 12:43 PM today. The company's stock activity stands at a volume of 39,374 shares during this active market phase.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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