Darjeeling Ropeway Company Limited has taken a significant step towards bolstering its capital structure by approving and allotting 70 lakh convertible warrants to non-promoter category investors on a preferential basis. This move, approved by the company's Board of Directors, is set to potentially triple the company's paid-up equity share capital upon full conversion of the warrants.

Warrant Allotment Details

The company has allotted 70,00,000 convertible warrants, each priced at Rs 16.80 per share. These warrants carry a face value of Rs 10 each, with a premium of Rs 6.80. The allottees have the option to convert each warrant into one equity share within an 18-month period from the date of allotment.

Financial Implications

• Current Paid-up Capital: Rs 3.05 crore (30.50 lakh equity shares)
• Potential Paid-up Capital: Rs 10.05 crore (1,00,50,000 equity shares)
• Total Consideration: Rs 11.76 crore (upon full conversion)
• Initial Payment Received: Rs 2.94 crore (25% of the total consideration)

Allotment Distribution

The warrants were allotted to 10 non-promoter category investors. Here's a breakdown of the top allocations:

Key Points

• The company has received 25% of the total consideration, amounting to Rs 2.94 crore.
• The remaining 75% will be payable upon conversion of the warrants into equity shares.
• Post-conversion, the total number of equity shares will increase from 30.50 lakh to 1,00,50,000.
• The new equity shares, once issued, will rank pari-passu with the existing equity shares of the company.

Regulatory Compliance

The allotment was made in accordance with the provisions of Chapter V of SEBI (ICDR) Regulations, 2018. The decision was taken at a board meeting held on September 23, which commenced at 12:00 P.M. and concluded at 12:40 P.M.

This strategic move by Darjeeling Ropeway Company Limited represents a significant step towards strengthening its capital base and potentially fueling future growth initiatives.

Darjeeling Ropeway Company Limited has received a significant boost to its capital raising plans. The company announced that it has secured in-principle approval from the BSE Limited for issuing 70,00,000 warrants convertible into equity shares on a preferential basis.

Key Details of the Warrant Issue

• Number of Warrants: 70,00,000 (Seventy Lakhs)
• Conversion Ratio: Each warrant is convertible into one equity share
• Face Value: Rs. 10 per equity share
• Issue Price: Not less than Rs. 16.80 per warrant
• Allottees: Non-promoters

Approval and Compliance Requirements

The BSE granted the in-principle approval through its letter Ref: LOD/PREF/MV/FIP/872/2025-26. However, the exchange has clarified that this approval does not constitute final approval for listing of the securities. Darjeeling Ropeway Company must adhere to several regulatory requirements, including:

1. Compliance with the Companies Act, 2013
2. Adherence to Securities and Exchange Board of India (SEBI) regulations
3. Obtaining necessary statutory approvals

Additional Measures

The BSE has advised Darjeeling Ropeway Company to implement the following measures:

1. Strengthen internal controls to monitor trades executed by proposed allottees
2. Obtain undertakings from allottees confirming they will not engage in intra-day trading or sell the company's shares until the allotment date

Post-Issue Formalities

Following the allotment of securities, Darjeeling Ropeway Company is required to:

1. Make a listing application without delay, along with applicable fees
2. Comply with post-issue formalities as per SEBI regulations
3. Apply for listing within 20 days from the date of allotment

Management Statement

Ashok Dilipkumar Jain, Managing Director of Darjeeling Ropeway Company Limited, signed the intimation to BSE regarding the in-principle approval, demonstrating the company's commitment to transparent communication with its stakeholders.

This warrant issue represents a significant step for Darjeeling Ropeway Company Limited, potentially strengthening its capital base and providing funds for future growth initiatives. Investors and market participants will be keenly watching the company's next steps as it moves forward with this preferential issue.