Avonmore Capital & Management Services Limited has announced a significant move to bolster its financial position through a preferential issue of convertible warrants. The company's Board of Directors has given the green light to raise funds totaling Rs. 74.83 crore through the issuance of up to 3,77,00,000 fully convertible warrants.

Key Details of the Fundraising Initiative

• Issue Price: The warrants will be issued at Rs. 19.85 each.
• Allottees: The warrants will be allocated to promoters and promoter group entities.
• Conversion Terms: Each warrant is convertible into one equity share within 18 months from the date of allotment.
• Payment Structure: Warrant holders are required to pay 25% of the consideration upfront, with the remaining 75% due upon conversion.

Breakdown of Warrant Allocation

The company has outlined the following allocation of warrants among the allottees:

Impact on Shareholding

The preferential issue is set to significantly alter the company's shareholding structure. Notably, Innovative Money Matters Pvt Ltd's stake is expected to increase from 33.14% to 38.05%, assuming full conversion of the warrants.

Regulatory Approval and Next Steps

The fundraising initiative is subject to regulatory and statutory approvals, including shareholder approval. To this end, Avonmore Capital has scheduled an Extra-Ordinary General Meeting (EGM) for September 9, 2025, to seek shareholder consent for the issuance.

Board Meeting Details

The decision was made during a Board meeting held on August 13, 2025, which commenced at 12:30 PM and concluded at 16:09 PM. The company has duly informed the stock exchanges of this development in compliance with SEBI regulations.

This strategic move by Avonmore Capital & Management Services Limited appears aimed at strengthening its capital base and potentially funding future growth initiatives. Investors and market watchers will be keenly observing how the company utilizes these funds and the impact on its financial performance in the coming quarters.

Avonmore Capital & Management Services witnessed a notable change in its shareholding pattern as Navjeet Singh Sobti (HUF) increased its stake in the company. The transaction, which took place on August 7, has caught the attention of market observers.

Stake Increase Details

Navjeet Singh Sobti (HUF), part of the promoter/promoter group category, acquired 75,000 shares of Avonmore Capital & Management Services through open market transactions. This strategic move resulted in a significant increase in their shareholding:

The acquisition represents a 0.02% increase in the promoter group's stake in the company.

Company Overview

Avonmore Capital & Management Services, listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE), has a total equity share capital of 282,184,741 shares, valued at Rs. 282,184,741.

Additional Corporate Developments

In a separate announcement, Avonmore Capital & Management Services informed the stock exchanges about an upcoming board meeting scheduled for August 13. The meeting agenda includes:

1. Consideration of a proposal to raise funds through the issue of equity shares or convertible warrants via preferential allotment.
2. Discussion on convening an Extraordinary General Meeting (EGM) to seek shareholder approval for the proposed fund-raising initiative.

The company has also announced the closure of the trading window for designated persons and insiders from the time of this intimation until 48 hours after the declaration of the board meeting outcome.

Market Implications

The increase in promoter holding, coupled with the upcoming board meeting to discuss fund-raising options, may signal confidence in the company's future prospects. Investors and market analysts will likely keep a close watch on Avonmore Capital's next moves and their potential impact on the company's financial position and market performance.

Stakeholders are advised to stay tuned for further updates from the company and regulatory filings for a comprehensive understanding of Avonmore Capital's strategic direction.