STL Networks Board Approves Preferential Issue of Convertible Warrants to Twin Star Overseas
STL Networks Limited announced that its Board of Directors, during a meeting held on April 18, 2026, approved significant corporate actions, including amending the company’s Articles of Association and authorizing the preferential issue of convertible warrants.During the board meeting, the company approved alterations to its Articles of Association (AOA). These amendments relate to the incorporation of specific clauses governing the issuance of non-convertible and convertible securities, including convertible warrants. The changes aim to clarify provisions related to the further issue of securities by the company, pending necessary shareholder approvals.
Details of Preferential Issue
The board also approved the creation, issuance, and allotment of up to 4,50,00,000 convertible warrants. These warrants are slated for a preferential issue to Twin Star Overseas Limited, the promoter of STL Networks Limited.Under the approved terms, the total issue size is up to 4,50,00,000 warrants, each issued at a price of Rs. 24 (Rupees Twenty-Four only). This price includes both the warrant subscription price and the warrant exercise price. The total aggregate issue size is capped at Rs. 108,00,00,000 (Rupees One Hundred and Eight Crore Only), payable through cash consideration.
Each issued warrant carries the right to convert into or be exchanged for one equity share of the company, which has a face value of Rs. 2 (Rupees Two only). The conversion features a premium of Rs. 22 (Rupees Twenty-Two only) per share.
The details of the proposed preferential issue, including the allottee and the conversion terms, are summarized below:
| Detail | Description/Value |
|---|---|
| Allottee | Twin Star Overseas Limited |
| Type of Security | Convertible Warrants |
| Issuance Type | Preferential Issue (Private Placement Basis) |
| Warrant Quantity | Up to 4,50,00,000 |
| Issue Price Per Warrant | Rs. 24 |
| Total Aggregate Size | Up to Rs. 108,00,00,000 |
| Conversion Terms | Each Warrant converts into 1 equity share (Face Value: Rs. 2; Premium: Rs. 22) |
The convertible warrants can be exercised in one or more tranches over a period of eighteen months commencing from the date of allotment. If the allottee does not exercise the warrants within this stipulated period, the unexercised warrants will lapse, and the amount paid for them will stand forfeited.
Prior to the proposed preferential allotment, Twin Star Overseas Limited held 20,94,02,750 Shares, representing a 42.91% stake. Following the allotment of the warrants, the investor's shareholding is expected to stand at 25,44,02,750 Shares, representing 47.73% of the company on a fully diluted basis.
STLNETWORK Stock Price Movement
On Friday, STL Networks Limited shares edged higher to close at ₹25.15, marking a modest gain of 0.20%. The stock saw robust activity, with a total traded volume reaching 5.23 million shares during the session.Source:
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