NewsRSWM Limited Schedules Extra-Ordinary General Meeting for Preferential Issue of Convertible WarrantsRSWM Limited Schedules Extra-Ordinary General Meeting for Preferential Issue of Convertible Warrants
RSWM Limited has scheduled an Extra-Ordinary General Meeting for May 8, 2026 to approve preferential issue of 24,70,000 convertible warrants at Rs. 146/- each to promoter group entity M/s LNJ Textiles Advisory LLP. The issue aims to raise Rs. 36.06 crores for funding subsidiary's Bottle to Bottle Project and general corporate purposes. Warrants are convertible within 18 months, with pricing determined per SEBI ICDR Regulations based on volume weighted average prices.
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RSWM Limited has announced an Extra-Ordinary General Meeting (EGM) scheduled for Friday, May 8, 2026 at 2:00 PM through video conferencing to seek shareholder approval for a preferential issue of convertible warrants to its promoter group.
Meeting Details and Purpose
The EGM will be conducted through Video Conferencing (VC) and Other Audio Visual Means (OAVM) facility, with the proceedings deemed to be held at the company's registered office in Kharigram, P.O. Gulabpura, Rajasthan. The primary agenda involves seeking approval for the preferential issue to promoter/promoter group entities under applicable provisions of Chapter V of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
Warrant Issue Specifications
The company proposes to issue and allot up to 24,70,000 convertible warrants at Rs. 146/- per warrant, including a premium of Rs. 136/- each. The warrants will be issued to M/s LNJ Textiles Advisory LLP, a promoter group entity.
| Parameter: | Details |
|---|---|
| Number of Warrants: | 24,70,000 |
| Issue Price: | Rs. 146/- per warrant |
| Premium: | Rs. 136/- per warrant |
| Face Value: | Rs. 10/- per warrant |
| Proposed Allottee: | M/s LNJ Textiles Advisory LLP |
| Category: | Promoter Group |
Key Terms and Conditions
The convertible warrants carry specific terms designed to comply with regulatory requirements:
- Conversion Period: Warrant holders can exercise the option to convert warrants into equity shares within 18 months from the date of allotment
- Payment Structure: 25% of the warrant price payable on allotment, with the remaining 75% due before conversion
- Allotment Timeline: Warrants to be allotted within 15 days from the date of passing the resolution
- Equity Share Rights: Converted equity shares will rank pari-passu with existing equity shares
- Lock-in Period: Subject to lock-in provisions as specified under SEBI ICDR Regulations
Fund Utilization and Financial Impact
The preferential issue aims to raise up to Rs. 36.06 crores, with funds allocated for specific corporate purposes:
| Purpose: | Amount (Rs. Crores) | Timeline |
|---|---|---|
| Financial assistance to LNJ Greenpet Private Limited for Bottle to Bottle Project: | 27.06 | Up to 18 months |
| General Corporate Purpose: | 9.00 | As decided by the Company |
| Total: | 36.06 |
Pricing Methodology and Compliance
The relevant date for pricing determination is Wednesday, April 8, 2026, being 30 days prior to the EGM date. The issue price of Rs. 146/- per warrant has been determined in accordance with Regulation 164(1) of SEBI ICDR Regulations, 2018, based on the higher of:
- 90 Trading Days Volume Weighted Average Price preceding the relevant date
- 10 Trading Days Volume Weighted Average Price preceding the relevant date
The equity shares are listed on National Stock Exchange of India Limited (NSE) and BSE Limited, with NSE recording the highest trading volume during the 90 trading days preceding the relevant date.
Shareholding Impact
Post-conversion of warrants, the shareholding pattern will witness changes in promoter group holdings:
| Category: | Pre-Issue Shares | Pre-Issue % | Post-Issue Shares | Post-Issue % |
|---|---|---|---|---|
| Promoters' Holding: | 2,62,32,923 | 55.69% | 2,87,02,923 | 57.90% |
| Non-Promoters' Holding: | 2,08,68,761 | 44.31% | 2,08,68,761 | 42.10% |
| Total: | 4,71,01,684 | 100.00% | 4,95,71,684 | 100.00% |
E-Voting and Participation Details
Shareholders can participate in remote e-voting from May 5, 2026 at 9:00 AM to May 7, 2026 at 5:00 PM. The record date for determining voting eligibility is Friday, May 1, 2026. The company has appointed Shri Mahesh Kumar Gupta, Practicing Company Secretary, as the Scrutinizer for the e-voting process.
The resolution requires approval by special resolution, and the results will be declared along with the Scrutinizer's Report on the company's website and stock exchange platforms immediately after declaration.
Historical Stock Returns for RSWM
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.05% | +18.25% | +11.93% | +7.75% | +5.54% | +33.66% |
How will the Bottle to Bottle Project at LNJ Greenpet Private Limited impact RSWM's competitive position in the sustainable textiles market?
What potential dilution concerns might minority shareholders raise given the promoter group's shareholding increase from 55.69% to 57.90%?
Could this preferential issue signal RSWM's broader strategy to consolidate operations within the LNJ Group ecosystem?
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