Sobhagya Mercantile Limited announced the successful allotment of 10,48,500 equity shares through conversion of convertible warrants, marking a significant capital raising exercise for the company. The Board of Directors approved this allotment on March 27, 2026, following the regulatory framework established under SEBI regulations.

Warrant Conversion Details

The allotment involved conversion of convertible warrants that were originally issued on preferential basis on March 11, 2026. The conversion was executed at an exercise price of Rs. 505.8675 per warrant, with the final issue price set at Rs. 674.49 per equity share.

Investor Participation

The warrant conversion involved two non-promoter investors who participated in the allotment process. The distribution of shares between the investors shows concentrated participation from institutional investors.

Capital Structure Impact

The warrant conversion has resulted in a substantial increase in the company's paid-up equity share capital. This expansion reflects the company's successful execution of its capital raising strategy through the preferential allotment route.

Regulatory Compliance

The allotment was conducted in compliance with various regulatory provisions including Chapter V of SEBI (Issue of Capital and Disclosures Requirements) Regulations, 2018, and sections 42 and 62 of The Companies Act, 2013. The company had received in-principle approval from BSE Limited vide letter no. LOD/PREF/SS/FIP/1759/2025-26 dated February 24, 2026. The original warrant issuance was approved through an Extra Ordinary General Meeting held on February 2, 2026, ensuring proper shareholder approval for the capital raising exercise.

Sobhagya mercantile Limited's board of directors has approved a significant fund raising initiative through the issuance of convertible warrants worth ₹87.75 crores. The board meeting held on March 23, 2026, concluded with the approval of issuing 13,01,000 convertible warrants to non-promoters on a preferential basis.

Warrant Issue Details

The board has structured the fund raising proposal in accordance with regulatory requirements under Section 42 and 62 of the Companies Act, 2013 and SEBI ICDR Regulations, 2018. The convertible warrants will be issued at a premium pricing structure to raise additional capital for the company.

Allottee Information

The warrant issuance will be distributed between two institutional investors, ensuring diversified participation in the fund raising exercise.

Conversion Terms and Timeline

Each convertible warrant carries the right to convert into one equity share within 18 months from the date of allotment. The conversion can be exercised in one or more tranches, providing flexibility to warrant holders. Initial payment of 25% of the issue price is required at the time of warrant allotment, with the remaining amount payable upon conversion exercise.

Regulatory Approvals and EGM

The warrant issuance is subject to member approval through an Extraordinary General Meeting scheduled for April 20, 2026, at 11:30 AM via video conferencing. The board has also approved material related party transactions with Nag Ham 182 Highway Private Limited, Nag Ham 183 Highway Private Limited, and Kitadi Torgaon Highway Private Limited, which will also require member approval.

PDTS and Associates, Company Secretaries, has been appointed as scrutinizer for the remote e-voting process. The cut-off date for determining voting eligibility has been set as April 13, 2026. The company operates under CIN L45100MH1983PLC031671 and maintains its registered office at One Lodha Place, Lower Parel, Mumbai.