Sadhana Nitro Chem Limited has fixed a floor price of ₹2.05 per equity share for the preferential allotment of 6,75,00,000 equity shares. The company will issue these shares at a price of ₹2.06 per equity share, which is higher than the determined floor price. This pricing structure was finalized in consultation with the National Stock Exchange of India Limited and intimated to the exchanges on June 01, 2026.

The floor price was calculated in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The valuation is based on the volume weighted average price (VWAP) of the company's equity shares over the 90 trading days and the 10 trading days preceding the relevant date.

The pricing formula prescribed under the regulations requires the floor price to be the higher of the two VWAP calculations. The 90-day VWAP was determined at ₹2.05 per equity share, while the 10-day VWAP stood at ₹2.03 per equity share. Consequently, the floor price was fixed at ₹2.05 per equity share.

Pricing Details

The preferential allotment of 6,75,00,000 equity shares, each with a face value of Re. 1, remains subject to shareholder approval.

Sadhana Nitro Chem Limited reported a net loss of ₹873.1 crore for the financial year ended March 31, 2026, compared to a net profit of ₹52.2 crore in the previous year. Revenue from operations for the year stood at ₹405.3 crore, a significant decrease from ₹1,333.7 crore in FY25. The company attributed the loss to temporary reductions in operational throughput and lower export offtake due to the West Asian crisis, which delayed dispatches. The statutory auditors issued an unmodified opinion on the financial results, though they highlighted a material uncertainty regarding the company's ability to continue as a going concern due to the significant losses incurred.

Board Decisions and Appointments

The Board of Directors, at its meeting held on May 26, 2026, approved the audited standalone and consolidated financial results. The Board decided not to recommend any dividend for the financial year 2025-26. Additionally, the Board appointed M/s. Chandrashekhar Iyer & Co as the Internal Auditor and M/s. Vinay Mulay & Co as the Cost Auditor for the financial year 2026-27. Mr. Vimal R. Jain, CFO & President – Operations and Finance, was appointed as a member of the Risk Management Committee.

Financial Performance Overview

The company's financial performance for the quarter and year ended March 31, 2026, reflected the operational challenges faced during the period. For the quarter ended March 31, 2026, the company reported a net loss of ₹33.83 crore on a revenue of ₹6.51 crore. The total expenses for the year increased to ₹1,370.3 crore, driven by higher finance costs and other expenses. The paid-up equity share capital increased significantly during the year following a Rights Issue.

Utilization of Funds and Future Outlook

The Board noted that the proceeds from the Rights Issue amounting to ₹251.95 crore were utilized for the objects of the issue as contained in the Letter of Offer till March 31, 2026. Management stated that working capital funds were infused in the second week of March 2026, leading to a recovery in operations during the latter half of the month. The company expects improvements in subsequent periods as operational stability returns and market conditions become more predictable, despite the volatile situation arising from the West Asian crisis.