Concord Drugs Promoters Boost Holdings Through Preferential Allotment

1 min read     Updated on 24 Nov 2025, 07:45 PM
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Overview

Concord Drugs Limited's promoters and directors have increased their stakes through a preferential allotment on November 20, 2025. Nagi Reddy, Koni Reddy, and Manoj Kumar Reddy, all promoters and directors, acquired both equity shares and warrants. The company has disclosed these transactions in compliance with SEBI regulations on insider trading.

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*this image is generated using AI for illustrative purposes only.

Concord Drugs Limited , a pharmaceutical company, has reported significant insider transactions as its promoters and directors increased their stakes through a preferential allotment. The transactions, which took place on November 20, 2025, involved the purchase of both equity shares and warrants by key company insiders.

Details of the Transactions

The following table summarizes the acquisitions made by the promoters and directors:

Name Position Securities Acquired Transaction Type
Nagi Reddy Promoter and Director Equity Shares and Warrants Preferential Allotment
Koni Reddy Promoter and Director Equity Shares and Warrants Preferential Allotment
Manoj Kumar Reddy Promoter and Director Equity Shares and Warrants Preferential Allotment

Regulatory Compliance

Concord Drugs has duly disclosed these transactions in compliance with the Securities and Exchange Board of India (SEBI) regulations on insider trading. This transparency is crucial for maintaining investor trust and adhering to regulatory requirements.

Implications for Investors

The preferential allotment to promoters and directors often signals confidence in the company's future prospects. However, investors should note that such transactions can also impact the company's shareholding pattern and potentially affect stock liquidity.

Market Response

While the immediate market response to these insider transactions is not provided in the available information, such moves typically attract investor attention. Shareholders and potential investors may view this as a positive sign, reflecting the management's commitment to the company.

It's important to note that this preferential allotment comes at a time when the pharmaceutical sector in India is experiencing significant developments and challenges. Investors are advised to consider this transaction within the broader context of the company's performance and industry trends.

As always, investors should conduct their own research and consider seeking professional financial advice before making investment decisions based on insider transactions or any other market news.

Historical Stock Returns for Concord Drugs

1 Day5 Days1 Month6 Months1 Year5 Years
-5.00%-13.69%+12.00%+135.30%+108.11%+240.55%
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Concord Drugs Limited Raises ₹18.88 Crore Through Preferential Allotment

1 min read     Updated on 20 Nov 2025, 09:36 PM
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Reviewed by
Naman SScanX News Team
Overview

Concord Drugs Limited (CDL) completed a capital raising initiative through a preferential allotment of equity shares and convertible warrants. The company allotted 31,75,000 equity shares at ₹36.30 per share, raising ₹11.53 crore. Additionally, 20,25,000 convertible warrants were issued at ₹36.30 each, potentially raising ₹7.35 crore. The allotment was made to both promoters and public investors, with promoters receiving 5,00,000 equity shares and 18,00,000 warrants, while the public received 26,75,000 shares and 2,25,000 warrants. The warrants are convertible within 18 months, subject to payment of the balance consideration.

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*this image is generated using AI for illustrative purposes only.

Concord Drugs Limited (CDL) has successfully completed a significant capital raising initiative through a preferential allotment of equity shares and convertible warrants. The company's board of directors approved the allotment in a meeting held on November 20, 2025, marking a strategic move to bolster its financial position.

Equity Share Allotment

CDL has allotted 31,75,000 fully paid-up equity shares at an issue price of ₹36.30 per share, which includes a premium of ₹26.30 over the face value of ₹10. This allotment has raised a total of ₹11.53 crore for the company.

Convertible Warrants

In addition to the equity shares, the board also approved the allotment of 20,25,000 convertible warrants. Each warrant is convertible into one fully paid-up equity share of ₹10 face value, at an issue price of ₹36.30 per warrant. The total amount to be raised through these warrants is ₹7.35 crore.

Allotment Details

The preferential allotment was made to both promoters and public investors. Here's a breakdown of the allotment:

Category Equity Shares Convertible Warrants
Promoters 5,00,000 18,00,000
Public 26,75,000 2,25,000
Total 31,75,000 20,25,000

Key Points

  • The company has received 25% upfront consideration for the warrants from the allottees.
  • The warrants are convertible within 18 months from the date of allotment, subject to payment of the balance consideration.
  • This capital raise is pursuant to the approval of shareholders at the Extraordinary General Meeting held on July 31, 2025.
  • The allotment complies with SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018.

This preferential allotment represents a significant move for Concord Drugs Limited, potentially providing the company with additional capital for its growth initiatives.

Historical Stock Returns for Concord Drugs

1 Day5 Days1 Month6 Months1 Year5 Years
-5.00%-13.69%+12.00%+135.30%+108.11%+240.55%
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