Porwal Auto Components Limited has secured in-principle approval from BSE Limited to raise capital through a preferential issue of equity shares and warrants to promoter and non-promoter investors. The approval, granted on June 24, 2026, permits the company to allot 17,54,384 equity shares to non-promoters and 3,94,735 warrants to the specified promoter group shareholders. This move is aimed at bolstering the company's capital structure while ensuring compliance with SEBI regulations.

The preferential allotment involves equity shares with a face value of ₹10 each, issued at a price of ₹57.00 per share, which includes a premium of ₹47.00. The warrants, also priced at ₹57.00 each, are convertible into or exchangeable for one equity share within a period of 18 months from the date of issue. The total issuance is strictly governed by the provisions of the Companies Act, 2013, and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Key Details of the Preferential Issue

The following table outlines the specifics of the securities approved for issuance:

Compliance and Monitoring Requirements

BSE has mandated that Porwal Auto Components strengthen its internal controls to monitor trades executed by the proposed allottees. The company must obtain an undertaking from allottees confirming they will not engage in intra-day trading or sell shares in the company until the allotment date. This measure is intended to prevent non-compliance with Chapter V of the SEBI ICDR Regulations.

The exchange emphasized that the responsibility for verifying these undertakings and ensuring compliance rests solely with the issuer. Any non-compliance detected post-allotment could impact the listing of the shares. Furthermore, the company is required to submit a listing application within twenty days from the date of allotment, along with applicable fees and necessary documents, to facilitate the formal listing of the securities.

Porwal Auto Components Limited secured shareholder approval to raise ₹12.25 crore through a preferential issue of equity shares and convertible warrants. The resolutions were passed during an Extraordinary General Meeting (EGM) held on June 5, 2026, via video conference. The company plans to issue 17,54,384 equity shares to non-promoter investors and 3,94,735 warrants to the promoter group to strengthen its financial position and support growth strategies.

The equity shares are priced at ₹57.00 each, including a premium of ₹47.00, aggregating to ₹9,99,99,888. The warrants, also priced at ₹57.00 each, are convertible into equity shares within 18 months from the date of allotment. The warrant issue requires an upfront payment of 25% of the price, with the remaining 75% payable upon conversion. The allotments are subject to in-principle approval by the stock exchanges and comply with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and the Companies Act, 2013.

Resolution Details

The Board sought approval for two key resolutions. The specific details of the preferential issue are outlined below:

Investor Allocation

The preferential issue targets specific public investors and promoter group members. The allocation of securities and the corresponding amounts are detailed in the table below:

| Sr. No. | Name of Investor | Category | No. of Securities | Amount (

) | Type of Securities | |---:|:---|:---|---:|---:|:---| | 1 | Ms. Neha Nishant Gandhi | Public | 4,38,596 | 2,49,99,972 | Equity shares | | 2 | Mr. Nishant Lalitbhai Gandhi | Public | 4,38,596 | 2,49,99,972 | Equity shares | | 3 | Mr. Akshar Yatin Popat | Public | 4,38,596 | 2,49,99,972 | Equity shares | | 4 | Ms. Shreya Bhavesh Shah | Public | 4,38,596 | 2,49,99,972 | Equity shares | | 5 | Ms. Pramila Jain | Promoter Group | 21,930 | 12,50,010 | Convertible Warrants | | 6 | Mukesh Jain HUF | Promoter Group | 1,31,578 | 74,99,946 | Convertible Warrants | | 7 | Shailesh Jain HUF | Promoter Group | 87,719 | 49,99,983 | Convertible Warrants | | 8 | Gajendra Jain HUF | Promoter Group | 65,789 | 37,49,973 | Convertible Warrants | | 9 | Devendra Jain HUF | Promoter Group | 87,719 | 49,99,983 | Convertible Warrants |

Meeting Proceedings

The EGM was conducted in compliance with Ministry of Corporate Affairs and SEBI guidelines. Shraddha Jain, Practicing Company Secretary, served as the Scrutinizer. Voting results declared on June 9, 2026, showed 99.99% of valid votes cast in favor of the proposals. The meeting was attended by 42 members, including Chairman & Whole Time Director Mukesh Jain, Managing Director Devendra Jain, and Independent Directors Gautam Chand Kothari, Naveen Kumar Dhiman, and Mohit Handoo.