Prostarm Info Systems Limited allotted 28,98,717 convertible warrants on a preferential basis to 21 non-promoter investors at an issue price of ₹147 per warrant. The total aggregate value of the allotment stands at ₹42.61 crore.

The Board of Directors approved the allotment via a circular resolution on October 15, 2026. This action follows a special resolution passed by members at the 19th Annual General Meeting held on September 11, 2026, and receipt of in-principal approvals from BSE Limited and National Stock Exchange of India Limited.

Subscription Structure and Payment Terms

Each convertible warrant entitles the holder to subscribe to one fully paid-up equity share with a face value of ₹10 at a premium of ₹137. The payment structure is divided into two tranches:

• Upfront Payment: The company received 25% of the issue price, amounting to ₹36.75 per warrant. The total upfront subscription amount collected is ₹10.65 crore.
• Balance Payment: The remaining 75% of the issue price, or ₹110.25 per warrant, must be paid upon exercise of conversion rights within 18 months from the date of allotment.

If a warrant holder fails to exercise the conversion option within the 18-month window, the warrants lapse, and the upfront subscription amount is forfeited in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Key Allotment Details

The equity shares arising from the conversion will rank pari passu with existing equity shares regarding voting rights and dividends. These shares are subject to listing approvals and lock-in requirements under Regulation 167 of the SEBI ICDR Regulations.

What the Numbers Show

The upfront cash inflow of ₹10.65 crore represents only 25% of the total potential capital raise of ₹42.61 crore. This structure indicates that Prostarm Info Systems has secured immediate liquidity but retains significant execution risk, as the remaining ₹31.96 crore depends entirely on investor willingness to exercise their options within the next 18 months. The forfeiture clause serves as a penalty for non-exercise, protecting the company's capital structure but leaving the bulk of the funding contingent on future market conditions and investor sentiment.

Prostarm Info Systems Limited has received in-principle approval from both BSE and NSE for the preferential issue of up to 28,98,717 warrants convertible into equity shares at ₹147 per share to non-promoters.

Regulatory clearance details

The company confirmed receipt of approvals from both exchanges under Regulation 28(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The BSE approval, bearing reference number LOD/PREF/GB/FIP/873/2026-27, was dated October 1, 2026. The NSE approval, bearing reference number NSE/LIST/56946, was also dated October 1, 2026. The company intimated stakeholders of the NSE approval via a filing dated October 3, 2026.

This in-principle approval is a procedural step required before the final allotment of securities can proceed. The warrants are structured to be fully convertible into equity shares upon exercise, subject to regulatory and shareholder approvals as applicable under the Companies Act and SEBI regulations.

Issue specifics

The proposed preferential issue targets non-promoter entities. The key parameters of the transaction are outlined below:

Compliance and sign-off

The intimation for the NSE approval was signed by Sachin Gupta, Company Secretary and Compliance Officer for Prostarm Info Systems, with the digital signature recorded on October 3, 2026, at 10:39:52 +05'30'. The earlier BSE intimation was similarly signed by Sachin Gupta, with the digital signature recorded on October 1, 2026, at 18:09:12 +05'30'. The company stated that both disclosures are made for the information of all stakeholders.