Garg Furnace Ltd board approved the allotment of 13,98,000 warrants convertible into equity shares on a preferential basis. The allotment was made at an issue price of ₹126.50 per warrant, aggregating to ₹17,68,47,000.

The Board of Directors considered and approved the allotment during its meeting held on October 12, 2026, at the registered office in Ludhiana. This action follows prior approvals from the Board on July 31, 2026, and the members at the Annual General Meeting held on August 29, 2026. The company also received in-principle approval from BSE Limited via a letter dated September 29, 2026.

Allotment Structure and Pricing

Each warrant is convertible into one fully paid-up equity share with a face value of ₹10. The total issue price of ₹126.50 per warrant comprises two components:

• Warrant Subscription Price: ₹31.625 per warrant (25% of the issue price), which has already been received by the company.
• Warrant Exercise Price: ₹94.875 per warrant (75% of the issue price), payable upon exercise of the conversion option.

The company confirmed receipt of an aggregate amount of ₹4,42,11,750 towards the subscription price from the allottees.

Promoter and Non-Promoter Participation

The warrants were allotted to persons belonging to both the promoter and non-promoter groups. The distribution highlights significant participation from the promoter group, which accounts for the majority of the allotted warrants.

What the Numbers Show

The allotment structure reveals a heavy concentration in the promoter group, which holds 12,00,000 of the total 13,98,000 warrants allotted. This represents approximately 85.8% of the total issuance, indicating that the capital infusion is primarily driven by internal stakeholders rather than external institutional or retail investors. The remaining 14.2% is distributed among six non-promoter entities and individuals.

Garg Furnace shareholders approved a special resolution for the preferential issuance of warrants convertible into equity shares at its 53rd annual general meeting. The meeting also saw the approval of material related-party transactions and the reappointment of cost auditors.

The meeting was held on August 29, 2026, at the company's registered office in Ludhiana. With requisite quorum present, Ms. Supreena Tagra, Company Secretary, welcomed attendees. Mr. Devinder Garg, Chairman and Managing Director, took the chair and provided an overview of the financial performance for the fiscal year ended March 31, 2026.

Key Resolutions Passed

Shareholders voted on several ordinary and special business items. The resolutions were processed through remote e-voting, which ran from August 26 to August 28, 2026, alongside ballot voting at the venue.

Smt. Vaneera Garg retires by rotation under Section 152(6) of the Companies Act, 2013, and offered herself for reappointment. The board also sought approval for material related-party transactions as per regulatory requirements.

Voting Process

The company facilitated remote e-voting in compliance with Section 108 of the Companies Act, 2013, and Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Mrs. Pooja Damir Miglani, Proprietor of M/s. PDM & Associates, served as the scrutinizer for the voting process.

The consolidated results of the voting will be submitted to BSE Limited and uploaded on the company website and CDSL portal upon receipt of the scrutinizer's report.