Praveg Limited will hold an Extra-Ordinary General Meeting (EGM) on Friday, August 21, 2026, at 11:30 a.m. IST via Video Conferencing to approve significant capital restructuring measures. The primary agenda includes converting an outstanding unsecured inter-corporate loan of ₹22,92,67,500 from Jhaveri Credits and Capital Limited into equity shares and issuing fully convertible warrants worth ₹30,25,00,000 to promoter group members. These moves aim to optimize the company’s capital structure, reduce debt obligations, and raise additional funds for working capital requirements.

The Board of Directors approved these resolutions in meetings held on July 13, 2026, and July 22, 2026. The loan conversion involves allotting up to 8,33,700 equity shares with a face value of ₹10 each at an issue price of ₹275 per share. This transaction is structured as a set-off against the outstanding loan extended by Jhaveri Credits and Capital Limited, a member of the Promoter Group. The relevant date for pricing determination was Wednesday, July 22, 2026, which is 30 days prior to the scheduled EGM.

In addition to the loan conversion, Praveg Limited proposes a preferential issue of 11,00,000 warrants convertible into equity shares. The warrants are priced at ₹275 each, aggregating to a total issue size of ₹30,25,00,000. The proceeds from this warrant issue are designated for meeting working capital needs, including employee salaries, operational costs, raw material procurement, and other business expenses. The warrant holders will be required to pay 25% of the issue price (₹68.75) at subscription and the remaining 75% (₹206.25) upon exercise of the conversion right within 18 months.

Key Transaction Details

The pricing for both the equity shares and warrants is based on the valuation report dated July 22, 2026, by Mr. Sagar Shah, an Independent Registered Valuer. The minimum price determined under Regulation 164(1) read with Regulation 166A(1) of the SEBI (ICDR) Regulations is ₹266.00 per share. The proposed issue price of ₹275 complies with these regulatory requirements. A pricing certificate was issued by M/s. ALAP & Co. LLP, Practicing Company Secretaries.

What the Numbers Show

The proposed transactions significantly alter the promoter group’s stake in the company without requiring fresh cash outflow for the loan conversion component. By converting ₹22.93 crore of debt into equity, Praveg Limited reduces its interest liability and strengthens its net worth. Simultaneously, the issuance of warrants raises ₹30.25 crore in cash, providing immediate liquidity for working capital. The combined effect increases the promoter group’s shareholding percentage, consolidating control while improving the balance sheet’s debt-to-equity ratio. The lock-in period for the newly allotted shares and warrants will be as per SEBI ICDR Regulations.

Shareholders holding shares as on the cut-off date of Friday, August 14, 2026, are eligible to vote. Remote e-voting will commence on Tuesday, August 18, 2026, at 09:00 a.m. and end on Thursday, August 20, 2026, at 05:00 p.m. M/s. ALAP & Co. LLP has been appointed as the scrutinizer for the e-voting process.

Praveg Ltd approved a preferential issue of equity shares and convertible warrants aggregating approximately ₹53.72 Cr on July 22, 2026, to strengthen its capital base and reduce debt. The Board approved the conversion of an unsecured inter-corporate loan from Jhaveri Credits and Capital Limited into 8,33,700 equity shares at an issue price of ₹275 per share, aggregating approximately ₹22.93 Cr. Additionally, the Board sanctioned the issuance of 11,00,000 convertible warrants at ₹275 per warrant to promoter group members, raising approximately ₹30.25 crore.

The conversion of the loan follows a supplemental agreement dated July 13, 2026, which amended the original loan pact signed on May 7, 2025. Jhaveri Credits and Capital Limited is identified as a lender and a promoter group entity. The transaction is classified as a related party transaction conducted at arm's length and does not result in any immediate change in the management or control of the company.

The preferential allotment of warrants is distributed among four individuals from the promoter group: Harsh Vishnubhai Patel, Nupur Vishnubhai Patel, and Zalak Harsh Patel will receive 3,00,000 warrants each, while Kamlaben Vitthalbhai Patel will receive 2,00,000 warrants. Each warrant is convertible into one fully paid-up equity share of ₹10 face value, exercisable within 18 months from the date of allotment.

Post-allotment, the promoter and promoter group shareholding will increase to 49.87% from 46.17%, while public shareholding will decrease to 50.13% from 53.83%. The total paid-up equity capital post-issue will be 2,80,83,876 shares. The company has scheduled an Extra Ordinary General Meeting on August 21, 2026, to seek shareholder approval for these proposals.