Indiabulls seeks nod for ₹1000.07 crore warrant issue
Indiabulls Limited has scheduled an EGM on July 2, 2026, to approve a preferential issue of warrants worth ₹1000.07 crore to promoter and non-promoter entities. The issue of 51.55 crore warrants, priced at ₹19.40 each, aims to raise funds for subsidiary growth and working capital. The warrants are convertible into equity shares within 18 months, with 25% of the price payable at allotment.
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Indiabulls Limited has scheduled an Extraordinary General Meeting (EGM) on July 2, 2026, to seek shareholder approval for a preferential issue of warrants worth ₹1000.07 crore. The company plans to issue up to 51,55,00,000 warrants at an issue price of ₹19.40 each, including a premium of ₹17.40, to promoter group entities and non-promoter group entities. The proceeds from the issue are intended to fund the growth plans of subsidiaries, meet working capital requirements, and support general corporate purposes.
The preferential issue will be made to four specific investors. Promoter group entities Phanes Limited and Hermes Limited are proposed to be allotted 22,52,50,000 and 14,02,50,000 warrants respectively. Non-promoter group entities EBISU Global Opportunities Fund Limited and Nyaasa Global Fund VCC – Nyaasa India EM Sub Fund are proposed to be allotted 10,00,00,000 and 5,00,00,000 warrants respectively. The issue price has been determined based on a valuation report from a SEBI-registered valuer and is higher than the floor price calculated as per SEBI ICDR Regulations.
Objects of the Issue
The company has outlined the allocation of the ₹1000.07 crore proceeds, with a permitted deviation of +/- 10% depending on future circumstances.
| S. No | Objects | Estimated Amount | Estimated timeline for utilization |
|---|---|---|---|
| 1 | Funding growth plans of the subsidiary(ies) | INR 400,00,00,000 | Within 18 months of receipt of issue proceeds |
| 2 | Working capital requirements of the Company | INR 400,00,00,000 | Within 18 months of receipt of issue proceeds |
| 3 | Working capital requirements of the subsidiary(ies) | INR 150,00,00,000 | Within 18 months of receipt of issue proceeds |
| 4 | General Corporate purposes | INR 50,07,00,000 | Within 18 months of receipt of issue proceeds |
| Total | INR 1000,07,00,000 | Within 18 months of receipt of issue proceeds |
Terms of the Warrants
Each warrant is convertible into one fully paid-up equity share of face value ₹2. An amount equivalent to 25% of the issue price is payable at the time of allotment, with the balance 75% payable prior to the allotment of equity shares upon conversion. The warrants have an exercise period of 18 months from the date of allotment. If the right attached to the warrants is not exercised within this period, the warrants will lapse and the initial amount paid will be forfeited. However, if the company receives the balance 75% of the issue price but no notice for conversion is received, the warrants will be mandatorily converted into equity shares upon expiry of the 18-month period.
The Board of Directors approved the issue on June 3, 2026. Acuite Ratings & Research Limited has been appointed as the monitoring agency for the issue, as the size exceeds ₹100 crore. The agency will submit quarterly reports until the full utilization of proceeds. The relevant date for determining the floor price is June 2, 2026.
Shareholder Meeting Details
The EGM will be held through Video Conferencing or Other Audio Visual Means on July 2, 2026, at 11:30 AM IST. Remote e-voting will commence on June 29, 2026, at 10:00 AM and conclude on July 1, 2026, at 5:00 PM. The cut-off date for determining voting rights is June 25, 2026. The company has appointed Mr. Nishant Mittal, Proprietor of M/s. N Mittal & Associates, as the scrutinizer for the e-voting process.
Historical Stock Returns for Indiabulls
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.71% | -1.72% | +25.00% | +34.73% | +36.57% | -74.71% |
What specific growth initiatives will the subsidiaries undertake with the allocated ₹400 crore?
How will the preferential allotment to promoter group entities impact the company's existing shareholding structure?
What are the potential risks if the warrants are not exercised within the 18-month period?
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