Jattashankar revises warrant issue size to ₹77.32 crore
Jattashankar Industries Limited revised its preferential warrant issue to 84,05,000 units aggregating ₹77.32 crore following BSE remarks. The warrants, priced at ₹92 each, include a premium of ₹82 and are offered to 56 allottees. Proceeds will fund working capital and general corporate purposes.
*this image is generated using AI for illustrative purposes only.
Jattashankar Industries Limited has issued a corrigendum to its notice of postal ballot dated May 12, 2026, modifying the resolution for the preferential allotment of convertible warrants. The revision follows remarks received from BSE Limited regarding the ineligibility of two allottees and the disclosure of pre-preferential shareholding details. The company has subsequently reduced the issue size and updated the explanatory statement for Agenda Item No. 2.
Revised Issue Details
The board has approved the issuance of up to 84,05,000 convertible warrants, a reduction from the previously proposed 86,95,000 warrants. The warrants are being issued at a price of ₹92 each, comprising a face value of ₹10 and a premium of ₹82. The total issue size aggregates to ₹77,32,60,000. The proceeds from the issue are intended to be utilized for meeting working capital requirements and general corporate purposes.
Utilization of Proceeds
The company plans to deploy the funds raised through the preferential issue towards specific objects. An estimated ₹60,00,00,000 is allocated for meeting working capital requirements, while ₹17,32,60,000 is earmarked for general corporate purposes. The management estimates that the entire issue proceeds will be utilized within six months from the date of receipt of funds.
| Sr. No. | Particulars | Total estimated amount (₹) | Tentative timelines |
|---|---|---|---|
| 1. | Working capital requirements | 60,00,00,000 | Within 6 months from receipt of funds |
| 2. | General Corporate Purpose | 17,32,60,000 | |
| Total | 77,32,60,000 |
Warrant Allottees and Terms
The warrants are proposed to be issued to 56 allottees, including individuals and entities, categorized as both promoter and non-promoter groups. The warrants will be convertible into equity shares within a period of 18 months from the date of allotment. The relevant date for determining the issue price is fixed as May 12, 2026.
The payment structure requires 25% of the issue price to be paid on allotment of the warrants, with the remaining 75% payable at the time of conversion into equity shares. The warrants and the resultant equity shares will be subject to a lock-in period as specified under the SEBI (ICDR) Regulations.
Shareholder Voting
The remote e-voting process commenced on May 13, 2026, and will remain open until June 11, 2026, at 05:00 P.M. Shareholders who have already cast their votes and have queries regarding the revision may contact the company via email at jattashankarind@yahoo.com up to the closing date of the voting process.
Historical Stock Returns for Jattashankar Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.49% | +11.41% | -0.72% | +33.14% | +83.97% | +1,829.74% |
How might the removal of the two ineligible allottees impact the company's promoter-to-non-promoter shareholding ratio post-conversion, and could this trigger any regulatory thresholds?
Given the six-month deployment timeline for working capital, what operational expansion or business cycle pressures is Jattashankar Industries likely facing that necessitate such urgent liquidity?
If a significant portion of the 56 allottees choose not to convert their warrants within the 18-month window, how could the forfeiture of the 25% upfront payment affect the company's capital structure and investor confidence?
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