Porwal Auto Components Limited disclosed that its promoter group, led by Mrs. Pramila Jain, acquired 3,94,735 warrants on July 09, 2026, increasing their holding in the company. This acquisition, representing 2.29% of the fully diluted share capital, was executed through a preferential allotment. The capital infusion follows approvals from shareholders and BSE Limited, raising the company's paid-up equity share capital to ₹16,85,43,840.

The warrants were allotted at an issue price of ₹57.00 per warrant, aggregating to a total issue size of ₹2,24,99,895. The company received ₹56,24,973.75 as an upfront payment, which constitutes 25% of the warrant issue price. These instruments are valid for 18 months from the date of allotment and are convertible into one fully paid-up equity share of ₹10 each upon payment of the balance consideration of ₹42.75 per warrant.

The total equity share capital post-allotment stands at ₹16,85,43,840, divided into 1,68,54,384 equity shares. The fully diluted share capital, including the warrants, amounts to ₹17,24,91,190, consisting of 1,72,49,119 equity shares. The board also approved obtaining an International Securities Identification Number (ISIN) for these convertible warrants.

Breakdown of Promoter Acquisition

*Includes shares held by other Persons Acting in Concert (PACs).

Key Details of the Issue

• Warrant Upfront Payment: 25% of issue price (₹14.25 per warrant).
• Warrant Balance Payment: ₹42.75 per warrant due at conversion.
• Post-Allotment Paid-up Capital: ₹16,85,43,840 divided into 1,68,54,384 equity shares.
• Total Diluted Capital: ₹17,24,91,190 divided into 1,72,49,119 equity shares.

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.