Vintage Coffee & Beverages approved a preferential allotment of up to 42 lakh convertible warrants to its promoter group and launched a new employee stock option plan during its board meeting on September 4, 2026.

The board also approved the re-appointment of Chairman and Managing Director Balakrishna Tati, the appointment of M/s. Sreedar Mohan & Associates as statutory auditors, and a change in the company’s registered office address.

Capital Raise Details

The company approved the issue of not exceeding 42,00,000 convertible warrants with a face value of ₹10 each at an issue price of ₹164 per warrant (including a premium of ₹154). The warrants are being allotted via preferential allotment to the Promoter/Promoter Group.

The total potential raise from this instrument is approximately ₹6.88 crore (42,00,000 warrants × ₹164). Each warrant carries the right to subscribe one equity share upon conversion. The warrants must be converted into equity shares within 18 months from the date of allotment; failure to convert will result in forfeiture of the amount paid.

Post-allotment and assuming full conversion, promoters are expected to hold 36.49% of the paid-up capital, while public shareholders will hold 63.51%.

Employee Stock Options

The board formulated the “VCBL Employee Stock Options Scheme 2026,” approving the grant of up to 30,00,000 options to eligible employees. These options are exercisable into equity shares of face value ₹10 each. The scheme complies with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

Options may be granted at an exercise price equal to the market price or a discounted price determined by the Nomination and Remuneration Committee, provided it is not less than the face value of ₹10. Vesting periods range from a minimum of one year to a maximum of five years from the date of grant.

Governance and Administrative Updates

The board approved several governance-related changes subject to shareholder approval in the ensuing Annual General Meeting:

• Auditor Appointment: M/s. Sreedar Mohan & Associates appointed as statutory auditors for two years, from the conclusion of the 46th AGM until the conclusion of the 48th AGM.
• Director Re-appointment: Balakrishna Tati re-appointed as Chairman and Managing Director for five years, effective July 16, 2027. His remuneration increased to ₹30,00,000 per month plus a commission of 3.5% of net profits.
• Whole-time Director Remuneration: Sai Teja Tati’s remuneration increased to ₹10,00,000 per month plus a commission of 1% of net profits.
• Registered Office: Changed from Secunderabad to Gachibowli, Hyderabad, effective September 4, 2026.

AGM and Trading Window

The 46th Annual General Meeting for FY26 is scheduled for September 30, 2026, at 1:45 pm via video conferencing. The book closure period for dividend and AGM purposes is set from September 24, 2026, to September 30, 2026.

The trading window for dealing in Vintage Coffee securities remains closed pursuant to SEBI insider trading regulations and will reopen 48 hours after the conclusion of the board meeting.

Vintage Coffee & Beverages announced on August 31, 2026, the launch of a new product segment focused on Roasted & Ground (R&G) coffee. The company aims to target premium in-home consumption and expand its presence in the United States and Europe.

The expansion is part of the company’s broader premiumisation strategy, which also includes its entry into freeze-dried coffee (FDC). To support this initiative, Vintage Coffee has installed a modern roaster designed to provide unique roasting profiles for R&G coffee connoisseurs.

Strategic Market Outlook

Tati Balakrishna, Chairman and Managing Director, highlighted the growth potential of the global R&G market. He noted that the sector was estimated at USD 101.75bn in 2026 and is projected to reach USD 159.46bn by 2035, representing a compound annual growth rate (CAGR) of 5.12%.

The company cited post-pandemic trends driving increased home brewing as a key factor for this expansion. Additionally, global café chains are increasingly focusing on R&G coffee, further validating the strategic move.

What the Numbers Show

The disclosed market figures indicate a significant addressable opportunity for the company. With the global market expected to grow by nearly USD 58bn over the next nine years, entering the R&G segment allows Vintage Coffee to tap into high-value geographies like America, one of the largest consumers of R&G coffee worldwide. This shift from bulk or instant products to roasted variants suggests a deliberate move up the value chain to capture higher margins associated with premium branding and specialized processing.