VIP Clothing Limited Approves Preferential Issue of Warrants Worth Rs. 47.70 Crore
VIP Clothing Limited announced that its Board of Directors approved a significant preferential issuance of warrants. The decision pertains to the allotment of 2,12,00,000 warrants, which are convertible into an equivalent number of equity shares, bringing the total aggregate consideration to Rs. 47,70,00,000/-.The Board’s decision follows a meeting held on May 18, 2026.
Key Details of the Warrant Issue
The proposed issuance involves the allocation of 2,12,00,000 warrants to both Promoters and Non-Promoters. The issue is priced at Rs. 22.50 per warrant, which includes a premium of Rs. 20.50 per warrant.The financial details of the preferential issue are summarized below:
| Metric | Detail | Amount |
|---|---|---|
| Total Warrants Issued | 2,12,00,000 | N/A |
| Issue Price per Warrant | Rs. 22.50 | N/A |
| Premium per Warrant | Rs. 20.50 | N/A |
| Aggregate Consideration | Rs. 47,70,00,000/- | Forty-Seven Crore and Seventy Lakh |
Shareholders and Committee Structure
The proposed warrants are set to be allotted to 16 investors, comprising Promoter and Non-Promoter categories. The details of the proposed allotment include:| Investor Category | Name of Proposed Allottee | Number of Warrants Allotted |
|---|---|---|
| Promoter | Sunil Jaykumar Pathare | 45,00,000 |
| Promoter | Kapil Jaykumar Pathare | 45,00,000 |
| Promoter | Kanishk Sunil Pathare | 39,00,000 |
| Promoter Group | Avyukta Kapil Pathare | 39,00,000 |
| Promoter Group | Dhruv Agarwal | 1,50,000 |
| Non-Promoter | Rathore Gauravsingh Vijaysingh | 3,50,000 |
| Non-Promoter | Ashok Kishanchand Bhatia | 3,00,000 |
| Non-Promoter | Manta Ashok Bhatia | 1,00,000 |
| Non-Promoter | Ruchita Suresh Bhatia | 1,50,000 |
| Non-Promoter | Johar Hasan. Zojwalla | 4,00,000 |
| Non-Promoter | Mukesh Gobindram Kimtani | 9,50,000 |
| Non-Promoter | Trikaya Capital Partners Limited | 9,00,000 |
| Non-Promoter | Shokin Packaging Pvt Ltd | 9,00,000 |
| Non-Promoter | Dipesh Umesh Kedia | 50,000 |
| Non-Promoter | Rama Harshad Kela | 1,00,000 |
| Total | 2,12,00,000 |
The Board also constituted a Committee to the preferential issue to finalize relevant documents and exercise the powers of the Board related to the proposal. The committee members are:
| Sr. No. | Composition | Designation | Category |
|---|---|---|---|
| 1 | Mr. Sunil Pathare | Chairman and Managing Director | Chairman |
| 2 | Mr. Kapil Pathare | Deputy Managing Director | Member |
| 3 | Mr. Uday Ajgaonkar | Independent Director | Member |
Shareholder Approvals and Warrant Mechanics
To execute the issuance, the Board approved the notice of an Extraordinary General Meeting (EGM) dated May 18, 2026, and further approved holding the EGM on Thursday, June 11, 2026, via video conferencing or other audio-visual means, to seek shareholder approval for the preferential issue.The Board also authorized the appointment of M/s. KRS & Co., Practicing Company Secretaries, to act as the Scrutinizer for the remote e-voting process at the June 11, 2026, EGM.
Regarding the warrants, the documentation specifies that:
- Each warrant is convertible into an equivalent number of fully paid-up equity shares of the Company.
- Proposed Allottees have a maximum period of 18 months from the allotment date to convert the warrants.
- The conversion involves a staggered payment structure, requiring at least 25% of the warrant issue price upfront, with the remaining 75% payable upon the exercise of the conversion option.
- If the warrants are allotted but not converted into equity shares, they shall lapse, and the 25% consideration paid for such warrants will be forfeited.
VIPCLOTHNG Stock Price Movement
VIP Clothing Limited shares today slipped by 2.09% to close at ₹26.60. The stock settled amid a volume of 386,727 shares, finding its close significantly below the day's high of ₹27.54 and closer to the ₹25.89 low.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.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.
Last edited by a moderator: