Citichem India Approves INR 131.60 Crore Fundraising Through Convertible Warrants

Citichem India Limited , a Mumbai-based company, has announced significant strategic moves to bolster its financial position and expand its operational capacity. The company's Board of Directors has approved a series of key decisions that are set to reshape its capital structure and funding capabilities.

Fundraising Initiative

The board has given the green light to raise INR 131.60 crore through the issuance of convertible warrants. This move involves:

• Issuing 4,700,000 convertible warrants
• Pricing each warrant at INR 28.00
• Offering warrants on a preferential basis to both promoters and non-promoters

Each warrant is convertible into one equity share with a face value of INR 10.00. The conversion right can be exercised within 18 months from the date of allotment, providing flexibility to the warrant holders.

Key Investors

The warrants are proposed to be issued to five investors, subject to shareholder approval:

1. Arif Esmail Merchant
2. Hashim Arif Merchant
3. Fozia Arif Merchant
4. Saima Hashim Merchant
5. Padmakar Jagannath Murodiya

This diverse group of investors includes both individuals from the promoter group and non-promoters, indicating a balanced approach to the fundraising effort.

Increase in Authorized Share Capital

In a related move, the board has also approved an increase in the company's authorized share capital:

This increase, subject to shareholder and regulatory approvals, will provide Citichem India with greater flexibility in its capital structure and potential for future equity-based fundraising.

Regulatory Compliance and Next Steps

The fundraising through convertible warrants will be conducted in accordance with Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The relevant date for this issuance, as per SEBI regulations, is set as Friday, 29th August, 2025.

Both the warrant issuance and the increase in authorized share capital are subject to:

• Approval from regulatory and statutory authorities
• Shareholder approval at the upcoming Annual General Meeting
• Other necessary permissions and statutory approvals

Annual General Meeting

Citichem India has scheduled its 33rd Annual General Meeting for September 30, 2025, where shareholders will have the opportunity to vote on these proposals.

Market Implications

This strategic fundraising initiative, coupled with the increase in authorized share capital, signals Citichem India's intent to strengthen its financial position and potentially fund future growth initiatives. The preferential allotment to both promoters and non-promoters suggests a balanced approach to equity participation and could potentially broaden the company's investor base.