Raymond Realty approves ₹409 Cr convertible warrant issue to promoter group
- Raymond Realty approved preferential allotment of 66,57,373 convertible warrants worth ~₹409 crore
- Promoter group entity J K Investors (Bombay) Limited is the sole allottee at ₹614 per warrant
- Promoter holding will rise from 29.83% to 35.99% on fully diluted basis post-conversion
- Authorised share capital increased from ₹70 crore to ₹75 crore to accommodate new shares
- Warrants are convertible into equity shares within 18 months; unconverted amounts will be forfeited
*this image is generated using AI for illustrative purposes only.
Raymond Realty board approved a preferential allotment of convertible warrants worth approximately ₹409 crore to its promoter group entity, J K Investors (Bombay) Limited, on September 11, 2026. The issuance involves 66,57,373 warrants priced at ₹614 each.
The company will raise funds through this private placement basis transaction, subject to shareholder and regulatory approvals. The move follows the board meeting held on Friday, September 11, 2026, which was initially convened to consider various modes of equity fundraising.
Deal Structure
The issuance comprises 66,57,373 convertible warrants at an issue price of ₹614 per warrant, including a premium of ₹604 per warrant. Each warrant carries the right to subscribe to one fully paid-up equity share of face value ₹10 at the same price of ₹614.
| Parameter | Details |
|---|---|
| Total Amount | ~₹409 crore |
| Warrants Issued | 66,57,373 |
| Issue Price | ₹614 per warrant |
| Allottee | J K Investors (Bombay) Limited |
| Conversion Period | Up to 18 months from allotment |
Unconverted warrants will lapse after 18 months, with the upfront consideration forfeited by the company. The allottee may convert the warrants into equity shares in one or more tranches within this period.
Promoter Holding Impact
J K Investors (Bombay) Limited currently holds 1,98,61,793 shares, representing 29.83% of the company’s equity. Following the full conversion of the proposed warrants, its stake will increase to 2,65,19,166 shares, or 35.99% on a fully diluted basis.
Authorised Capital Increase
The board also approved an increase in authorised share capital from ₹70 crore (7 crore shares) to ₹75 crore (7.5 crore shares). This expansion creates additional 50 lakh equity shares of ₹10 face value each, ranking pari-passu with existing shares, to accommodate the potential conversion of warrants.
Regulatory Compliance
The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The trading window for designated persons remains closed from August 21, 2026, until September 13, 2026, in compliance with SEBI insider trading regulations.
Historical Stock Returns for Raymond Realty
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.21% | -3.43% | +16.41% | +71.68% | +13.07% | -33.09% |
How will the ₹409 crore capital infusion specifically impact Raymond Realty's debt-to-equity ratio and future expansion plans?
What is the strategic rationale for issuing convertible warrants to a promoter entity rather than raising funds through public equity or debt instruments?
How might the increase in promoter holding to 35.99% influence minority shareholder sentiment and voting dynamics at upcoming general meetings?
20
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
