Vascon Engineers Limited has lost a significant work order worth Rs 131.58 crore from Reliance Industries Limited. The project, intended for the construction of four G+12 FLL type buildings at Sector-3, RG Expansion Jamnagar, was cancelled by the client. This development impacts the company's order book, as no execution had commenced on the site prior to the termination notice.

The company had initially received the Letter of Intent from Reliance Industries on May 18, 2026. The order value was Rs 131.58 crore, excluding GST. In a regulatory filing, Vascon Engineers disclosed that the work order has now been cancelled by Reliance Industries.

The disclosure was made to the National Stock Exchange of India Limited and BSE Limited under Regulation 30 of the SEBI (LODR) Regulations, 2015. The filing included an annexure detailing the specifics of the terminated contract and the reasons for its cancellation.

The table below outlines the key details of the cancelled order:

The cancellation removes the projected revenue from the company's future earnings pipeline. Vascon Engineers has requested the exchanges to take the information on record.

Vascon Engineers has confirmed that the issue price for the preferential allotment of 2 crore fully convertible warrants remains fixed at Rs 40, following a recalculation of the floor price. The company clarified that the revised floor price of Rs 39.90, derived from the 90-day volume-weighted average price (VWAP), continues to comply with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The preferential issue was approved by shareholders in an Extra-Ordinary General Meeting (EGM) held on May 18, 2026.

In response to observations from the National Stock Exchange of India Limited, the company stated that the relevant date for pricing remains April 17, 2026. However, the floor price calculation was referenced to the 90 and 10 trading days preceding this date. The 90-day VWAP was determined at Rs 39.90, while the 10-day VWAP stood at Rs 34.63. Consequently, the minimum offer price was established at Rs 39.90, which is lower than the proposed issue price of Rs 40.

Regarding the valuation report, the company disclosed that it had obtained the document under Regulation 166A of SEBI ICDR Regulations, 2018. The company noted that while the post-allotment shareholding of Mr. Siddharth Vasudevan Moorthy would be 5.79%, the report was secured as a conservative measure. The regulations stipulate that a valuation report is not required if there is no change in control or if the allotment does not exceed five percent to an allottee or those acting in concert.

The company also provided an updated shareholding pattern on a fully diluted basis, correcting an earlier disclosure in the EGM notice that had not considered ESOP shares granted but not allotted. The revised data indicates that the total share capital will increase to 25,73,17,111 equity shares post-allotment.

Shareholding Pattern Post-Allotment

The following table outlines the shareholding structure before and after the preferential issue on a fully diluted basis:

Allottee Shareholding Details

The company further clarified the revised shareholding of the proposed allottees on a fully diluted basis. The table below details the pre and post-issue holdings for the identified allottees:

The preferential allotment includes warrants issued to persons belonging to the promoter and non-promoter categories. The certification regarding the pricing compliance was provided by Amit Jaste and Associates, Practising Company Secretaries.