<h1>Sree Rayalaseema Hi-Strength Hypo Limited Cancels Proposed Preferential Issue of Equity Shares</h1>
Sree Rayalaseema Hi-Strength Hypo Limited has announced the cancellation of a previously approved preferential issue involving the issuance of equity shares. The decision, taken by the Board of Directors on August 12, 2026, pertains to a proposal that was initially approved on May 29, 2026.
The company decided to withdraw the offer for the allotment of 27,516,513 Equity Shares, which were earmarked for the conversion of an unsecured loan into equity. The shares were proposed at a face value of INR 1 each and an issue price of INR 36.00 per share. This preferential allotment was intended to benefit the company's promoters and promoter Group, utilizing the unsecured loan amounting to INR 99,05,94,474/-.
The cancellation followed a review by the Board of Directors at its meeting on August 12, 2026. The primary reason cited for terminating the proposed issuance was the encounter of certain procedural and regulatory complexities during the implementation phase of the security issuance.
Key details regarding the cancelled preferential allotment are summarized in the table below:
| Particulars | Detail |
|---|---|
| Type of Securities Proposed | Equity Share |
| Issuance Method | Preferential Allotment (Conversion of unsecured Loan into Equity Share) |
| Total Shares Proposed | 27,516,513 |
| Issue Price per Share | INR 36.00 |
| Face Value per Share | INR 1 |
| Conversion Basis (Unsecured Loan) | INR 99,05,94,474/- |
| Date of Initial Approval | May 29, 2026 |
The cancellation was approved by the Board of Directors at the August 12, 2026 meeting, which considered all ancillary resolutions related to the proposal that had been previously sanctioned.
SRHHYPOLTD Stock Price Movement
Sree Rayalaseema Hi-Strength Hypo Limited shares slipped by 0.99% on Wednesday, settling at ₹496 after shedding ₹4.95 from the previous close. The stock saw a traded volume of 21,324 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.
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