Milkfood Ltd allots 22 lakh convertible warrants at ₹30 per unit
- Milkfood Ltd allotted 22,00,000 convertible warrants at ₹30 each
- Initial subscription of ₹7.50 per warrant (25%) has been received
- Sudhir Avasthi and Deepankar Barat received 11,00,000 warrants each
- Balance payment due within 18 months for equity conversion
- Paid-up capital remains unchanged until warrants are converted
*this image is generated using AI for illustrative purposes only.
Milkfood Limited allotted 22,00,000 convertible warrants on a preferential basis at ₹30 per warrant during its board meeting held on September 7, 2026. The allotment was made to two non-promoter investors following shareholder approval in July.
The company received the initial subscription amount of ₹7.50 per warrant, representing 25% of the issue price. The allottees must pay the balance 75% within 18 months to convert the warrants into equity shares. Until conversion, the paid-up share capital remains unchanged.
Allotment Details
The warrants were allotted to individuals belonging to the Non-Promoter/Public Category. Both allottees received an equal number of warrants.
| Name of Allottee | Category | Warrants Allotted |
|---|---|---|
| Mr. Sudhir Avasthi | Non-Promoter | 11,00,000 |
| Mr. Deepankar Barat | Non-Promoter | 11,00,000 |
| Total | 22,00,000 |
The board had initially approved the preferential issue on June 30, 2026. Shareholders approved the move via a special resolution at the Extra-ordinary General Meeting held on July 27, 2026. The Bombay Stock Exchange granted in-principle approval on August 25, 2026.
Conversion and Lock-in
Each warrant entitles the holder to subscribe to one equity share upon payment of the remaining issue price. The warrants are subject to lock-in periods as prescribed under Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
The board meeting commenced at 11:00 am and concluded at 12:00 pm. Rakesh Kumar Thakur, Company Secretary and Compliance Officer, signed the disclosure.
Historical Stock Returns for Milkfood
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.71% | -0.93% | 0.0% | 0.0% | 0.0% | 0.0% |
How might the potential dilution of up to 22 lakh equity shares impact existing shareholder value if the warrants are fully converted?
What strategic rationale did Milkfood Limited cite for choosing convertible warrants over a direct equity issuance or debt financing?
Given the 18-month payment window, what market conditions or company performance metrics would likely incentivize the allottees to convert their warrants early?
17
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
