NewsCorporate ActionsDavin Sons Retail Unveils ₹7.69 Crore Fundraising Plan Through Share Capital Boost and Preferential AllotmentDavin Sons Retail Unveils ₹7.69 Crore Fundraising Plan Through Share Capital Boost and Preferential Allotment
Davin Sons Retail Limited's Board has approved a capital restructuring plan to raise ₹7.69 crore through equity shares and convertible warrants. The authorized share capital will increase from ₹6.00 crore to ₹10.00 crore. The company will issue 19.25 lakh equity shares and 11.50 lakh convertible warrants at ₹25 each. Post-allotment, promoters' stake is expected to increase from 47.70% to 50.80%. The plan includes allotments to both promoters and non-promoters. An Extraordinary General Meeting is scheduled for September 9, 2025, to seek shareholder approval.
*this image is generated using AI for illustrative purposes only.
Davin Sons Retail Limited has announced a significant capital restructuring and fundraising initiative, as approved by its Board of Directors. The company aims to raise approximately ₹7.69 crore through a combination of equity shares and convertible warrants, signaling a strategic move to strengthen its financial position.
Authorized Share Capital Increase
The Board has given the green light to increase the company's authorized share capital from ₹6.00 crore to ₹10.00 crore. This expansion will be achieved by creating an additional 40 lakh equity shares, each with a face value of ₹10.
Preferential Allotment Details
The fundraising plan includes two key components:
- Equity Shares: The company will issue up to 19.25 lakh equity shares at ₹25 each, targeting both promoters and non-promoters.
- Convertible Warrants: An additional 11.50 lakh convertible warrants will be issued at ₹25 each, exclusively to promoters.
Warrant Conversion Terms
The convertible warrants come with specific terms:
- Exercisable within 18 months from the allotment date
- 25% upfront payment required
- Remaining 75% due upon conversion
Promoter Stake Increase
Post-allotment, the combined shareholding of promoters Mohit Arora and Nohit Arora is expected to rise from 47.70% to 50.80%, strengthening their control over the company.
Detailed Allotment Breakdown
| Allottee | Pre-Issue Holding (%) | Equity Shares to be Allotted | Warrants to be Allotted | Post-Issue Holding (%) |
|---|---|---|---|---|
| Mohit Arora | 36.60 | 3,00,000 | 6,50,000 | 34.50 |
| Nohit Arora | 11.10 | 2,75,000 | 5,00,000 | 16.30 |
| Vansha Wealth Management Private Limited | -- | 3,30,000 | -- | 3.96 |
| Gaurav Jain HUF | -- | 3,00,000 | -- | 3.60 |
| RNR Wealth Management Private Limited | -- | 2,30,000 | -- | 2.76 |
| Swanand Suresh Phand | -- | 2,00,000 | -- | 2.40 |
| HBPA Tradex Private Limited | -- | 1,30,000 | -- | 1.56 |
| Deepak Gupta | -- | 1,00,000 | -- | 1.20 |
| Saurabh Agarwal | -- | 50,000 | -- | 0.60 |
| Karan Gulshan Sapra | -- | 10,000 | -- | 0.12 |
Shareholder Approval and EGM
These proposals are subject to shareholder approval, which will be sought at an Extraordinary General Meeting (EGM) scheduled for September 9, 2025. The EGM will be conducted through video conferencing or other audio-visual means.
This strategic move by Davin Sons Retail Limited aims to bolster its capital structure and provide additional resources for potential growth initiatives. The preferential allotment to both promoters and non-promoters indicates a balanced approach to fundraising while maintaining promoter control.
Historical Stock Returns for Davin Sons Retail
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.39% | +12.02% | -2.62% | +170.83% | +11.73% | +11.73% |
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