Stellant Securities (India) Limited and its associates have completed a significant acquisition in Active Clothing Co. Ltd , acquiring 10,00,000 fully convertible warrants representing 9.10% of the company's fully diluted post-issue paid-up equity share capital. The transaction was executed on March 19, 2026, through preferential allotment by the target company.

Acquisition Details

The acquisition involves three parties acting in concert: Stellant Securities (India) Limited, Mr. Subhash Phootarmal Rathod, and Mrs. Mangala Subhash Rathod. The warrants have been distributed among the acquirers as follows:

Pre-Acquisition Holdings

Before this acquisition, the acquirers already held positions in Active Clothing Co. Ltd. Subhash Phootarmal Rathod owned 4,82,000 equity shares representing 3.1070% of the total share capital, while Mangala Subhash Rathod held 99,973 equity shares representing 0.6445%. Stellant Securities (India) Limited had no prior shareholding in the company.

Company Capital Structure

Active Clothing Co. Ltd's equity share capital before the acquisition consisted of 15,512,215 equity shares of face value ₹10 each, aggregating ₹155,122,150. Following the preferential allotment of 20,00,000 convertible warrants, the total diluted share capital increased to 17,512,215 equity shares with an aggregate value of ₹175,221,550.

Regulatory Compliance

The disclosure has been made under Regulation 29(1) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The acquirers have confirmed they do not belong to the promoter or promoter group of Active Clothing Co. Ltd. The company's shares are listed on BSE Limited.

Warrant Conversion Terms

The convertible warrants were issued on March 18, 2026, and are convertible within 18 months from the date of allotment. Each warrant is convertible into one equity share. The warrants were subscribed with an upfront payment of 25% of the issue price as per SEBI (ICDR) Regulations 2018. The total outstanding convertible warrants of 20,00,000 belong to both promoter and non-promoter groups.

Active Clothing Co Limited has successfully completed the allotment of its convertible warrants following BSE Limited's in-principle approval received on March 11, 2026. The company's Issue Committee approved the allotment of 20,00,000 convertible warrants on March 18, 2026, marking the completion of its ₹23 crore preferential issue.

Warrant Allotment Completion

The Issue Committee meeting held on March 18, 2026, formally approved the allotment of warrants to both promoters and non-promoter investors. The company has received an upfront payment of ₹5.75 crores, representing 25% of the total issue value.

Investor Distribution and Shareholding Impact

The warrant allotment includes six investors across promoter and non-promoter categories. The distribution demonstrates a balanced approach between existing promoters strengthening their position and new investors joining the company.

Regulatory Framework and Compliance

The allotment follows comprehensive regulatory approvals including Board of Directors' approval on January 27, 2026, and shareholders' approval at the Extra-Ordinary General Meeting held on February 26, 2026. BSE Limited's in-principle approval was secured on March 11, 2026, enabling the completion of the allotment process.

Key compliance requirements include adherence to Companies Act 2013, Securities Contracts (Regulation) Act 1956, and SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018. The company must ensure strict monitoring of trading activities by allottees and prevent any non-compliance with SEBI regulations regarding trading restrictions.

Conversion Terms and Future Obligations

Each warrant provides the right to convert into one fully paid-up equity share upon payment of the balance ₹86.25 per warrant within 18 months from the allotment date. Unexercised warrants will lapse after this period, with the upfront payment being forfeited by the company. The company must submit a listing application within twenty days from the allotment date along with applicable fees as per LODR Regulations.