Chandra Bhagat Pharma Limited has received in-principle approval from BSE for the preferential issue of 66,00,000 convertible warrants. The warrants are convertible into an equal number of equity shares at a price not less than ₹44 each.

The approval was issued by the BSE SME Platform on October 12, 2026, under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The securities will be allotted to both promoters and non-promoters.

Terms of the preferential issue

The exchange’s approval letter specifies that the 66,00,000 warrants carry a face value of ₹10 per share. The conversion price is set at a minimum of ₹44 per share. This transaction is structured as a preferential allotment, allowing targeted capital raising from specific investor groups rather than a public offering.

Regulatory conditions and compliance

The BSE emphasized that this in-principle approval does not constitute final listing approval. The company must separately comply with all requirements for listing the securities. The issuance must strictly adhere to the Companies Act, 2013, Securities Contracts (Regulation) Act, 1956, and SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

A critical condition imposed by the exchange relates to trading restrictions. The company is advised to strengthen internal controls to monitor trades executed by proposed allottees. Specifically:

• The company must obtain undertakings from allottees confirming they will not engage in intra-day trading or sell shares in the scrip until the allotment date.
• Verification of these undertakings is solely the responsibility of the issuer.
• Non-compliance observed post-verification may impact the listing of such shares.

Next steps for listing

Following the allotment of securities, Chandra Bhagat Pharma is required to make a listing application without delay. This application must include applicable fees and comply with Regulation 14 of the LODR Regulations. The company must also complete all post-issue formalities as specified by the exchange.

The BSE noted that for convertible securities, depositories will automatically release the excess lock-in period of pre-preferential holdings of allottees in compliance with SEBI ICDR Regulations, 2018, without requiring a separate No Objection Certificate from the exchange.

Chandra Bhagat Pharma shareholders approved all four agenda items at its 23rd Annual General Meeting on September 1, 2026. The resolutions received 100% support from the votes polled, with no dissent recorded.

The meeting, chaired by Managing Director Hemant Chandravadan Bhagat, took place at the company’s office in Matunga (East), Mumbai. The ordinary business items included the adoption of annual accounts for FY26 and the re-appointment of director Pranav Hemant Bhagat. Special business resolutions focused on increasing authorized share capital and issuing up to 66,00,000 convertible warrants on a preferential basis.

Voting Participation

Voting was conducted via physical polling papers, as the company is listed on the BSE SME Platform and exempt from e-voting requirements under the MCA Notification dated March 19, 2015. The cut-off date for voting eligibility was August 25, 2026.

Only eight shareholders attended the meeting: six from the promoter group and two from the public category. No shareholders participated via video conferencing or e-voting.

Audit and Compliance

The statutory auditors issued an unqualified report for FY26, with no qualifications or observations noted for the year ended March 31, 2026. The Chairman confirmed that the requisite quorum was present to validate the proceedings. The scrutinizer’s report, filed by Amit Dharmani & Associates, confirmed that all resolutions were passed with the requisite majority.

What the Numbers Show

Promoter dominance was evident in the voting dynamics. The promoter group holds 5,509,056 shares, representing approximately 73% of the total outstanding equity of 7,545,056 shares. With promoters casting 100% of their polled votes in favor, the outcome of the special resolutions—particularly the issuance of convertible warrants—was effectively determined by the controlling stake. Public participation remained negligible, with only 2,000 votes cast by non-institutional public shareholders against a holding base of over 2 million shares.