Parmax Pharma Ltd Increases Authorized Capital and Raises Funds through Preferential Issue

Parmax Pharma Ltd Increases Authorized Capital and Raises Funds through Preferential Issue​

Parmax Pharma Ltd has approved a significant increase in its authorized share capital and confirmed a substantial fundraising effort through a preferential issue. The Board of Directors, during a meeting held on June 8, 2026, took multiple resolutions covering corporate structure amendments, the issuance of new articles, and strategic funding initiatives.

Capital Expansion and Governance Changes​

The company's authorized share capital has been increased from ₹6,00,00,000 (Rupees Six Crores Only), representing 60,00,000 equity shares of face value ₹10 each, to ₹10,00,00,000 (Rupees Ten Crore Only). This increase allows for the issuance of 1,00,00,000 equity shares at a face value of ₹10 each.

Furthermore, the Board approved the adoption of a comprehensive new set of Articles of Association to replace the existing ones. This step is intended to bring the company's governing documents into alignment with the provisions of the Companies Act, 2013.

Preferential Issue Secures Funds and Strategic Control​

The core resolution involved the approval of a preferential issue designed to raise up to ₹19,28,19,682. The funds are being raised through the private placement of two types of securities to individuals categorized as Non-Promoter Group members: equity shares and convertible warrants.

The issuance of equity shares involves 31,37,586 units at an issue price of ₹36.50 per subscription share, which includes a premium of ₹26.50. This allocation is expected to generate proceeds totaling ₹11,45,21,889.

The company also issued 21,45,145 convertible warrants, each priced at ₹36.50 and carrying a premium of ₹26.50 per warrant. These warrants are exercisable by the holders to subscribe for one equity share (face value ₹10) against each warrant. The issuance of these warrants is set to generate ₹7,82,97,793.

The Preferential Issue totals up to ₹19,28,19,682 and will be undertaken for cash consideration. For the warrants, 25% of the per-warrant price must be payable at the time of allotment, with the remaining 75% payable upon exercise of the option.

The Preferred Issue is aimed at securing majority voting rights and control over Parmax Pharma Ltd through a combination of Preferential Allotment, secondary acquisition from sellers, and the Open Offer.

Details regarding the securities issued in this Preferential Issue are provided below:


A detailed breakdown of the allocation and shareholding status for the proposed allottees is available in the company records. For instance, Dhiren Chandulal Shah was allotted 6,04,190 equity shares and 5,35,715 warrants.

Corporate Actions and EGM Details​

The Board also approved the notice of an Extraordinary General Meeting (EGM) to be held on Thursday, July 2, 2026, via Video Conferencing (VC) or Other Audio Video Means (OAVM). The EGM is intended to seek shareholder approval for the matters discussed during the board meeting.

The e-voting period for the EGM was set, commencing on Monday, June 29, 2026, and ending on Wednesday, July 1, 2026. The cut-off date for e-voting was fixed as June 25, 2026.

The company appointed Shreyans Jain & Co., a Practising Company Secretary, to act as the scrutinizer for conducting the EGM's e-voting process.

Stock Price Movement​

Closing for the day, Parmax Pharma Ltd saw its shares settling at ₹48.90, surging 6.93% in after-hours trading. The company's stock moved through a wide intraday range, hitting lows as low as ₹44.09 before peaking at an intra-day high of ₹50.98.