Telge Projects sets ₹228.08 floor price for ₹13 crore warrant issue
- Floor price set at ₹228.08 per warrant for the preferential issue
- Approved issue price is ₹229, exceeding the regulatory floor
- Total raise of ₹13.00 crore via 5,67,686 convertible warrants
- Allotment restricted to three promoter group members
- Authorised share capital increased to ₹15 crore to accommodate issue
*this image is generated using AI for illustrative purposes only.
Telge Projects Limited has disclosed a floor price of ₹228.08 per convertible warrant for its proposed preferential issue, setting a minimal premium over the approved issue price of ₹229.
The disclosure, filed with the Bombay Stock Exchange on September 28, 2026, follows the Board’s approval of a proposal to raise ₹13.00 crore through the issuance of up to 5,67,686 convertible warrants. The warrants are directed exclusively to three members of the promoter group: Vishal Uttam Telge, Shobha Uttam Telge, and Shailesh Uttam Telge.
Pricing and regulatory compliance
The floor price was determined in accordance with Regulation 164(1) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The company confirmed that the approved issue price of ₹229 exceeds this floor price. The pricing guidelines prescribed under Chapter V of the ICDR Regulations were strictly followed in determining the final valuation.
The subscription structure requires an upfront payment of 25% of the warrant issue price, amounting to ₹57.25 per warrant. The remaining 75%, or ₹171.75 per warrant, is payable as the conversion price upon exercise. The warrants may be exercised in one or more tranches within 18 months from the date of allotment. The company stated that no assured return, downside protection, or financial assistance has been provided to the investors for this subscription.
| Item | Detail |
|---|---|
| Meeting Date | September 28, 2026 |
| Instrument | Convertible Warrants |
| Total Value | ₹13.00 crore |
| Floor Price | ₹228.08 per warrant |
| Issue Price | ₹229 per warrant |
| Allottees | Promoter Group (3 persons) |
Capital structure changes
To accommodate the new issuance, the Board approved increasing the Authorised Share Capital from ₹10 crore to ₹15 crore. This expansion involves dividing the capital into 1,50,00,000 equity shares of face value ₹10 each, up from the existing 1,00,00,000 shares. These changes are subject to shareholder approval in an extraordinary general meeting scheduled for October 23, 2026.
The preferential issue is structured such that it will not result in any change in control or management of the company. The board deliberated on issuing equity shares or warrants convertible into equity shares through preferential allotment before finalizing the warrant mechanism.
Trading window closure
In compliance with the Code of Conduct for Prevention of Insider Trading and the SEBI (Prohibition of Insider Trading) Regulations, 2015, the trading window for dealing in the securities of Telge Projects remained closed until 48 hours after the conclusion of the board meeting. This measure ensured that no insider information regarding the potential fund raising influenced market transactions during the decision-making phase.
Historical Stock Returns for Telge Projects
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.96% | +21.42% | +59.86% | +195.74% | +151.70% | +151.70% |
How will the dilution from the ₹13 crore preferential issue impact Telge Projects' earnings per share and return on equity metrics in the upcoming fiscal quarters?
What specific capital expenditure or working capital needs are the promoter group funds intended to address, and how does this align with the company's stated growth strategy?
Will the increase in Authorised Share Capital to ₹15 crore facilitate any subsequent public offerings or debt-to-equity conversions in the medium term?
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