Swastika Investmart has moved to the next stage of its capital raising process, with its Preferential Allotment Committee approving the issuance of 90.5 lakh warrants on September 19, 2026. This follows the Bombay Stock Exchange’s in-principle approval granted on September 18, 2026.

The committee meeting, held pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, authorized the issuance of warrants convertible into equity shares. The securities will be issued to promoters, promoter groups, and non-promoter/public category investors for cash consideration.

Issue Details

The proposed issue aligns with the special resolution passed by members at the Extra Ordinary General Meeting held on August 14, 2026. Each warrant carries a face value of ₹2 and is priced at not less than ₹63.64, including a premium of ₹61.64 per warrant.

Regulatory Compliance

The transaction must adhere to the Companies Act, 2013, and SEBI’s Issue of Capital and Disclosure Requirements (ICDR) Regulations, 2018. Swastika Investmart disclosed the BSE approval vide letter reference No. LOD/PREF/SS/FIP/797/2026-27 dated September 18, 2026.

The company is required to obtain undertakings from allottees confirming compliance with trading restrictions under Chapter V of the ICDR Regulations. These measures prevent intra-day trading or sales before the allotment date. Strict internal controls must be maintained to monitor trades by allottees.

Next Steps

Following the allotment, Swastika Investmart must file a listing application with the exchange within twenty days, as per Schedule XIX – Para (2) of the ICDR Regulations. The in-principle approval does not constitute final listing approval, which requires separate compliance with exchange requirements.

Swastika Investmart Limited has scheduled an Extra-Ordinary General Meeting (EGM) on August 14, 2026, to seek shareholder approval for a preferential allotment of warrants convertible into equity shares. The company aims to raise up to ₹57,59,42,000 by issuing 90,50,000 warrants at ₹63.64 each. This capital raise is intended to meet incremental working capital requirements and fund general corporate purposes, strengthening the firm’s liquidity position without diluting immediate equity control.

The Board of Directors approved the issuance in its meeting held on July 20, 2026. The EGM will be conducted via Video Conferencing or Other Audio-Visual Means (VC/OAVM), with the registered office in Mumbai deemed as the venue. Shareholders holding shares as of the record date, August 7, 2026, are eligible to vote. Remote e-voting is open from August 11, 2026, at 9:00 a.m. to August 13, 2026, at 5:00 p.m., facilitated by Central Depository Services (India) Limited (CDSL).

Warrant Issue Structure

Each warrant carries a face value of ₹2 and converts into one equity share within 18 months of allotment. Investors must pay 25% of the consideration (₹15.91 per warrant) at subscription, with the remaining 75% due upon exercise. If unexercised, the warrants lapse, and the initial payment is forfeited. The issue price of ₹63.64 exceeds the minimum floor price of ₹63.63, determined based on the volume-weighted average price (VWAP) of the preceding 10 trading days ending July 15, 2026. An independent valuation report was issued by Rohit Khandelwal, Chartered Accountant and Independent Registered Valuer.

Allottee Details

The issuance involves 18 allottees across promoter and non-promoter categories. Promoter group members, including Sunil Nyati, Anita Nyati, Parth Nyati, and Devashish Nyati, collectively subscribe to 25,50,000 warrants. Non-promoter investors include Intelliquity Ventures LLP, Valuworth Advisors LLP, and Ms. Yogita Gandhi, who holds the largest single stake among new allottees with 20,00,000 warrants.

Utilization of Proceeds

Ninety percent of the funds, amounting to ₹51,83,47,800, will be utilized for incremental working capital requirements over two years. The remaining 10%, or ₹5,75,94,200, is allocated for general corporate purposes. Unutilized proceeds will be kept in term deposits with scheduled commercial banks. The company confirmed that no change in control or board composition will result from this issue, and all proposed allottees hold their existing shares in dematerialized form.