karnika industries Limited has issued a corrigendum to the notice of its Extraordinary General Meeting (EGM) scheduled for May 11, 2026, through video conferencing and other audio-visual means. The corrigendum, dated April 28, 2026, modifies the Special Resolution pertaining to Item No. 2 and the Explanatory Statement forming part of the EGM Notice dated April 16, 2026. The modifications have been made based on suggestions and comments received from the National Stock Exchange of India Limited.

The Board of Directors at its meeting held on April 11, 2026, approved the issuance of up to 39,66,860 convertible warrants on a preferential basis. Each warrant carries a right to subscribe to one fully paid-up equity share of the company at a price of ₹121 per warrant, including a premium of ₹111 per warrant, aggregating up to ₹47,99,90,060. The proceeds from the preferential issue are proposed to be utilized primarily for working capital requirements, including timely payment of trade creditors and servicing or repayment of bank loans and other short-term borrowings. The balance proceeds will be utilized for general corporate purposes.

Pricing and Valuation Details

The issue price of ₹121 per warrant has been determined in accordance with Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The relevant date for price determination is April 10, 2026. The floor price is ₹120.15 per equity share, being the higher of the 90-day volume weighted average price (VWAP) of ₹120.15 and the 10-day VWAP of ₹110.30. The company has obtained a valuation report dated April 10, 2026 from Mr. Manish Gadia, an Independent Registered Valuer, which has been taken into consideration while determining the issue price.

Utilization of Issue Proceeds

The company intends to utilize the proceeds raised through the preferential issue towards specific objects. The indicative allocation of funds is as follows:

Proposed Allottees and Shareholding Pattern

The convertible warrants shall be issued and allotted to 14 proposed allottees, including 13 promoters and promoter group entities, and one non-promoter. The detailed allocation of warrants among the proposed allottees is provided below:

The shareholding pattern prior to the preferential issue is as on March 31, 2026. On a fully diluted basis, assuming full conversion of 39,66,860 convertible warrants into equity shares, the post-issue shareholding pattern shows promoters' holding increasing from 73.39% to 74.74%, while non-promoters' holding decreases from 26.61% to 25.26%. The existing promoters will continue to be in control of the company, and there will not be any changes in the management or control as a result of the proposed preferential allotment.

Regulatory Compliance and Timeline

The corrigendum states that the allotment of convertible warrants shall be completed within a period of 15 days from the date of passing of the resolution by the shareholders, subject to regulatory approvals. The company has obtained a certificate from Mrs. Poonam Binani, Practicing Company Secretary, certifying that the preferential allotment is being made in accordance with the requirements of Chapter V of the SEBI ICDR Regulations. The complete issue proceeds are expected to be received within 18 months from the date of allotment of the warrants. The equity shares issued upon conversion of warrants will be listed on the NSE (SME Emerge) and rank pari-passu with existing equity shares.

Karnika Industries has set a crucial deadline for investors looking to capitalize on its upcoming 4:1 bonus issue. The company has announced Thursday as the final day for share purchases to qualify for this significant corporate action.

Key Details of the Bonus Issue

• Ratio: 4:1 (four additional shares for every one share held)
• Last Date to Buy: Thursday
• Ex-Date: Friday, August 29, 2025

Important Information for Investors

Shareholders must ensure they hold Karnika Industries shares before the ex-date to be eligible for the bonus allotment. Any transactions completed on Thursday will be reflected in investors' demat accounts prior to the ex-date, thus qualifying them for the bonus shares.

Financial Implications

The bonus shares will be issued from the company's free reserves, coming at no additional cost to existing shareholders. While this move will increase the total number of outstanding shares, the face value of each share will remain unchanged.

Market Expectations

Following the bonus issue, a proportional adjustment in the share price is anticipated. This is a standard market reaction to such corporate actions, as the overall value of an investor's holding typically remains the same, distributed across a larger number of shares.

Investor Action Required

Investors interested in participating in this bonus issue should take note of the following:

1. Ensure share purchase transactions are completed by Thursday.
2. Verify that the shares are reflected in their demat accounts before the ex-date (Friday, August 29, 2025).
3. Be prepared for potential changes in share price post-bonus issue.

This bonus issue by Karnika Industries represents a significant opportunity for both existing shareholders and potential investors to increase their stake in the company without additional investment. As always, investors are advised to consider their individual financial goals and risk tolerance when making investment decisions.