Candour Techtex Limited has announced the successful conversion of 4,00,000 share warrants into equity shares, marking a significant capital expansion for the textile engineering company. The Board of Directors approved this allotment on December 12, 2025, following the exercise of conversion rights by the warrant holder.

Warrant Conversion Details

The company allotted 4,00,000 equity shares of face value ₹10.00 each to Mangal Keshav Capital Limited, a non-promoter entity. The conversion was executed at a specific pricing structure that reflects the original warrant terms.

The exercise price of ₹62.78 per warrant represents 75% of the original warrant exercise price of ₹83.70 per warrant. This pricing mechanism indicates that the warrant holders had already paid 25% of the exercise price at the time of initial warrant allotment.

Outstanding Warrant Position

The current conversion is part of a larger warrant allocation to Mangal Keshav Capital Limited. The company provided a comprehensive breakdown of the warrant status:

This indicates that Mangal Keshav Capital Limited still holds 8,00,000 warrants that remain available for future conversion, representing a potential additional capital infusion opportunity for the company.

Impact on Share Capital

The warrant conversion has resulted in a measurable increase in the company's paid-up equity share capital. The allotment expanded the equity base and strengthened the company's capital structure.

The newly allotted equity shares will rank pari-passu with existing equity shares in all respects, including dividend rights. This ensures equal treatment for all shareholders and maintains the uniform nature of the company's equity structure.

Regulatory Compliance

Candour Techtex Limited has fulfilled all regulatory requirements associated with the warrant conversion process. The company disclosed the transaction under Regulation 30 of the SEBI Listing Regulations, 2015, ensuring transparency for stakeholders. The Board meeting was concluded at 5:30 PM IST on December 12, 2025, with all necessary approvals obtained for the allotment process.

Candour Techtex Limited , a textile manufacturing company, has recently made significant strides in both its corporate structure and business operations. The company held an Extraordinary General Meeting (EGM) on November 20, 2025, where shareholders approved key resolutions aimed at expanding the company's capital base and securing new business opportunities.

Capital Expansion Initiatives

At the EGM, shareholders approved the following resolutions:

1. Increase in Authorized Capital: The company's authorized capital will be increased from Rs. 23.70 crores to Rs. 37.00 crores.

2. Preferential Share Issuance: Approval for issuing 67,86,400 equity shares on a preferential basis to investors.

3. Convertible Warrants: Issuance of 90,72,000 convertible warrants on a preferential basis to investors.

These capital raising initiatives are expected to provide Candour Techtex with additional funds for business expansion and growth opportunities. However, existing shareholders should be aware of the potential dilution effect this may have on their holdings.

All resolutions were passed with the requisite majority through remote e-voting and video conferencing, affecting the company's capital structure and potential investor base.

Strategic Business Developments

Alongside its capital expansion plans, Candour Techtex has also secured several strategic orders:

Defense Sector Entry

• Received first trial order for 6,700 meters of laminated fabrics from an approved Aerial Delivery Research and Development Establishment (ADRDE) vendor.
• The fabric is intended for parachute manufacturing, marking Candour Techtex's entry into the defense sector supply chain.
• After inspection, Candour Techtex's processed laminated fabric has met ADRDE standards, leading to direct engagement with ADRDE for supply of coated and laminated fabrics with special specifications.

Government E-Marketplace Registration

• Registered and gained approval on the Government E-Marketplace (GEM) portal.
• This enables participation in tenders issued by DRDO, ADRDE, and other government organizations.

Automotive Sector Order

• Received an order from Reliance Industries Ltd for 100,000 meters of lamination work on automotive fabrics.
• Order value: Approximately Rs 100.00 lakhs.
• Expected completion: March 2026.

These developments showcase Candour Techtex's efforts to diversify its product portfolio and expand into new market segments, potentially strengthening its position in the textile industry.

Financial Implications

While specific financial projections were not provided, the new orders and capital expansion may impact the company's future revenue and growth prospects. Investors and stakeholders may want to monitor the company's upcoming financial reports to assess the actual impact of these developments on Candour Techtex's financial performance.

As the company moves forward with its expansion plans and new business ventures, it will be important to observe how it manages its growth and capitalizes on these opportunities in the coming quarters.