Raj Oil Mills Approves Preferential Issue of Equity Shares and Warrants Raising Rs. 9.2 Crore
Raj Oil Mills Limited announced that its Board of Directors, in a meeting held on Tuesday, May 12, 2026, approved a proposal for fund-raising totaling up to Rs. 9,20,00,000 (Rupees Nine Crore Twenty Lakhs Only). The funds will be raised through a Preferential Issue involving both Equity Shares and Equity Warrants.The Board approved the issuance of up to 10,00,000 Equity Shares, each having a face value of ₹10/- (Rupees Ten only). These shares are offered at an issue price of ₹46/- (Rupees Forty Six only) per security, which includes a premium of ₹36/- (Rupees Thirty Six only) per share.
Additionally, the company also approved the issuance of up to 10,00,000 Equity Warrants. Each warrant is fully convertible into one Equity Share of face value ₹10/- (Rupees Ten only) and is being issued at an issue price of ₹46/- (Rupees Forty Six only) per security, with a premium of ₹36/- (Rupees Thirty Six only).
Collectively, the proposed issuance, which approximates Rs. 9,20,00,000, is based on a preferential basis to the proposed allottees.
Financial Details of the Preferential Issue
The total proposed issue amounts are detailed below:| Security Type | Maximum Quantity Proposed | Face Value | Issue Price | Premium | Aggregated Value |
|---|---|---|---|---|---|
| Equity Shares | Up to 10,00,000 | ₹10/- | ₹46/- | ₹36/- | Up to ₹4,60,00,000 |
| Equity Warrants | Up to 10,00,000 | ₹10/- | ₹46/- | ₹36/- | Up to ₹4,60,00,000 |
The funds are being raised through a Preferential Allotment in accordance with the company's regulations.
Impact on Share Capital
The exercise of the warrants and the allotment of the shares will result in the paid-up equity share capital of Raj Oil Mills Limited increasing from ₹14,98,86,840/- to ₹16,98,86,840/-.Allottees and Allocation Details
The proposal is extended to seven non-promoter investors. The allocation details for the securities are summarized in the following table:| Investor Name | Shares Allotted | Warrants Allotted | Subscription Amount (₹) |
|---|---|---|---|
| Ashfaque Ahmad | 500,000 | - | 2,30,00,000 |
| Mohammed Ashraf Mohammed Asgar Shaikh | - | 500,000 | 2,30,00,000 |
| Mohammed Wahid Mukhtar Ahmed Shaikh | 100,000 | 100,000 | 92,00,000 |
| Shifa Sameer Khorajia | 100,000 | 100,000 | 92,00,000 |
| Mohammed Rizwan Abdul Razzak Khanji | 100,000 | 100,000 | 92,00,000 |
| Glassil Industries LLP | 100,000 | 100,000 | 92,00,000 |
| Shoaib Shakir Nuri | 100,000 | 100,000 | 92,00,000 |
The warrants can be exercised in tranches on or before the completion of 18 months from the date of allotment. Conversion of the warrants into equity shares will cause the paid-up equity share capital of the Company to stand increased. The shares and warrants are mutually ranked, meaning they will rank equally with all existing equity shares of the company.
ROML Stock Price Movement
Today, Raj Oil Mills Limited shares edged higher, settling at ₹45.53, reflecting a gain of 0.44% on the day. The stock traded on a total volume of 5,047 shares.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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