Stellant Securities (India) Limited is seeking shareholder approval to raise up to ₹99.20 crore through a dual-track preferential issue, signaling a push to expand its investment and advisory operations. The company has scheduled its Extraordinary General Meeting (EGM) for August 24, 2026, to approve the issuance of fully convertible warrants to promoters and equity shares to public investors, all priced at ₹602 per unit. This capital injection aims to strengthen the firm’s balance sheet for future growth initiatives.

The proposed fundraising consists of two distinct components. First, the company plans to issue up to 3,48,837 Fully Convertible Warrants (FCWs) to promoter Mangla Rathod and her relatives, Saajan Rathod and Mayank Rathod. This tranche aims to raise up to ₹20.99 crore. Second, Stellant Securities intends to allot up to 12,99,143 equity shares to a broad base of 50 non-promoter public investors, including institutions like Lloyds Enterprises Limited and individuals such as Vibhoar Agrawal, raising up to ₹78.20 crore. The total potential inflow stands at ₹99.20 crore.

Both issues are priced at ₹602 per share/warrant, which includes a premium of ₹592 over the ₹10 face value. This pricing is based on the volume-weighted average price of the company’s shares on the Bombay Stock Exchange (BSE) preceding the relevant date of July 24, 2026. Specifically, the price exceeds both the 90-day VWAP of ₹578.32 and the 10-day VWAP of ₹601.94, complying with SEBI ICDR Regulations. Practicing Chartered Accountant R K Khandelwal & Co has certified compliance with these floor price requirements.

Key Terms of the Preferential Issue

The warrants issued to promoters carry an 18-month conversion window. Holders must pay 25% of the issue price (₹150.50) at subscription and the remaining 75% upon exercise. If unexercised within 18 months, the warrants will lapse, and the paid amount will be forfeited by the company. The resulting equity shares will rank pari-passu with existing shares in all respects, including dividend rights.

Capital Structure and Utilization

To accommodate this issuance, the Board also seeks approval to increase the authorized share capital from ₹7 crore to ₹17 crore, creating an additional one crore equity shares of ₹10 each. This alteration requires an amendment to Clause V of the Memorandum of Association. Currently, promoters hold 45.25% of the paid-up capital. Post-issue, assuming full conversion of existing and new warrants, promoter holding is projected to stand at 41.04%, while public shareholding will rise from 54.75% to 58.96%. There will be no change in management control.

What the Numbers Show

The capital raise reveals a strategic reliance on both internal promoter confidence and external public interest. By structuring the deal with warrants for promoters, the company delays immediate dilution while securing committed capital that converts over 18 months. Simultaneously, the large public component—comprising 50 diverse allottees—broadens the shareholder base without immediate promoter dilution. The absence of a monitoring agency, permitted because the warrant issue size is under ₹100 crore, suggests streamlined deployment of funds toward stated objectives: expanding investments in listed/unlisted companies and advisory services. Shareholders must vote between August 21 and August 23, 2026, via remote e-voting or attend the physical meeting on August 24.

Stellant Securities (India) Limited has scheduled a board meeting for July 24, 2026, to consider a proposal for raising funds through a preferential issue of securities. The board will also evaluate an increase in the company's authorized share capital to facilitate the fund-raising exercise. The trading window for designated persons and their immediate relatives will remain closed from July 21 until 48 hours after the conclusion of the meeting.

The board proposes to increase the authorized share capital from ₹7 crore, divided into 70,00,000 equity shares of ₹10 each, to ₹17 crore, divided into 1,70,00,000 equity shares of ₹10 each. This expansion requires a consequent amendment to Capital Clause V of the Memorandum of Association of the Company. The fund-raising proposal includes the determination of the issue price, subject to necessary regulatory and statutory approvals, including shareholder consent.

Agenda Details

The meeting, convened under Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, will address the following key items:

• Increase in authorized share capital.
• Proposal for fund raising via preferential issue.
• Determination of issue price.
• Approval for incidental and ancillary matters.

Capital Structure Proposal

Compliance with the SEBI (Prohibition of Insider Trading) Regulations, 2015, mandates the closure of the trading window to prevent insider trading during the material decision-making process. The board's decisions are subject to the approval of shareholders and relevant regulatory bodies.