Diamines & Chemicals Forfeits ₹8.79 Crore as 6.37 Lakh Warrants Lapse Due to Non-Exercise
Diamines & Chemicals Limited announced the lapse of 6,36,988 convertible warrants on April 01, 2026, leading to forfeiture of ₹8,79,04,344. The warrants, allotted on October 01, 2024, at ₹552 per warrant, expired as holders failed to exercise conversion rights within the 18-month deadline. Out of 9,06,390 total warrants, only 2,69,402 were converted on March 24, 2026, with the remaining lapsing as per SEBI regulations.
*this image is generated using AI for illustrative purposes only.
Diamines & chemicals Limited has informed stock exchanges about the lapse of 6,36,988 convertible warrants on April 01, 2026, resulting in the forfeiture of ₹8,79,04,344. The warrants expired due to non-exercise of the conversion option within the stipulated 18-month period from the date of allotment.
Warrant Allotment and Terms
The company had originally allotted 9,06,390 convertible warrants on October 01, 2024, on a preferential basis. Each warrant was convertible into one fully paid-up equity share with a face value of ₹10.00 at an issue price of ₹552.00 per warrant. At the time of allotment, the company received 25% of the issue price, amounting to ₹138.00 per warrant, totaling ₹12,50,81,820 as the initial subscription amount.
Warrant Conversion and Lapse Details
The conversion deadline for the warrants was March 31, 2026, marking 18 months from the allotment date. However, a significant portion of warrant holders failed to exercise their conversion rights within this timeframe. On March 24, 2026, only 2,69,402 warrants were converted into equity shares before the deadline expired.
| Warrant Status | Promoter | Non-Promoter | Total |
|---|---|---|---|
| Warrants allotted on October 01, 2024 | 5,86,990 | 3,19,400 | 9,06,390 |
| Warrants converted on March 24, 2026 | 2,63,602 | 5,800 | 2,69,402 |
| Warrants lapsed on April 01, 2026 | 3,23,388 | 3,13,600 | 6,36,988 |
Financial Impact and Regulatory Compliance
The lapse of 6,36,988 warrants has resulted in the forfeiture of ₹8,79,04,344, representing the initial subscription amount received on these warrants. This forfeiture is in accordance with Regulation 169(3) of Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.
Distribution Across Categories
The lapsed warrants affected both promoter and non-promoter categories significantly. Promoters accounted for 3,23,388 lapsed warrants, while non-promoters held 3,13,600 warrants that expired unconverted. The conversion rate was notably higher among promoters, with 2,63,602 warrants converted compared to only 5,800 warrants converted by non-promoters.
The company has made this disclosure available on its website at www.dacl.co.in and has informed both BSE Limited and National Stock Exchange of India Limited about the warrant lapse as required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
How will the forfeited ₹8.79 crore be utilized by Diamines & Chemicals Limited for future business expansion or debt reduction?
What impact will the significantly low conversion rate among non-promoters have on the company's future fundraising strategies?
Will the company consider issuing fresh warrants or explore alternative financing methods to raise the capital that was expected from the unconverted warrants?
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