Desh Rakshak Aushdhalaya Limited, a manufacturer of Ayurvedic and herbal products, has approved a significant equity allotment through a preferential issue. The company's Board of Directors, in a meeting held at its registered office in Haridwar, Uttarakhand, gave the green light for the issuance of 12,60,000 equity shares to non-promoter category allottees.

Key Details of the Allotment

• Number of Shares: 12,60,000 (Twelve Lakhs Sixty Thousand)
• Face Value: Rs. 10 per share
• Issue Price: Rs. 22 per share (including a premium of Rs. 12)
• Total Fund Raise: Rs. 2,77,20,000

Allotment Breakdown

The preferential issue has been allocated to four non-promoter category investors:

Impact on Share Capital

Following this preferential allotment, Desh Rakshak Aushdhalaya's issued, subscribed, and paid-up share capital will increase from Rs. 4,43,83,240 to Rs. 5,69,83,240. The total number of equity shares will rise from 44,38,324 to 56,98,324.

Regulatory Compliance

The company has stated that this allotment is in accordance with the Companies Act, 2013, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, and all other applicable laws. The allotment was approved by shareholders prior to the board's decision.

Board Meeting Details

The board meeting where this decision was made commenced at 1:00 PM and concluded at 1:45 PM. All directors of the company were present at the meeting, which was held at the company's registered office in Haridwar, Uttarakhand.

This equity allotment represents a significant development for Desh Rakshak Aushdhalaya Limited, potentially providing the company with additional capital for its operations in the Ayurvedic and herbal products sector.

Desh Rakshak Aushdhalaya Limited , a manufacturer of Ayurvedic and herbal products, has received in-principle approval from the BSE Limited for a significant preferential share issue. The company plans to issue 12,60,000 equity shares at Rs. 22.00 per share, including a premium of Rs. 12.00 per share, to non-promoters. This move is set to raise Rs. 27.72 crore for the Haridwar-based firm.

Key Details of the Preferential Issue

Regulatory Compliance and Approval

The BSE granted its in-principle approval under Regulation 28 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. This approval is a crucial step for Desh Rakshak Aushdhalaya, as it paves the way for the company to proceed with its capital raising plans.

Conditions and Next Steps

The company must adhere to several regulatory requirements to complete the share issue successfully:

1. Compliance: Ensure strict adherence to the Companies Act 2013, SEBI regulations, and other statutory approvals.
2. Internal Controls: Strengthen internal mechanisms to monitor trades by proposed allottees.
3. Allottee Undertaking: Obtain undertakings from allottees to avoid intra-day trading until allotment.
4. Listing Application: Submit a listing application within twenty days of allotment, as per SEBI regulations.

Impact on the Company

This preferential issue represents a significant opportunity for Desh Rakshak Aushdhalaya to raise capital, potentially fueling growth initiatives or strengthening its financial position. The successful completion of this share issue could provide the company with additional resources to expand its operations in the Ayurvedic and herbal product market.

As the company moves forward with this preferential issue, investors and market watchers will be keen to observe how Desh Rakshak Aushdhalaya utilizes the raised capital to drive its business objectives and enhance shareholder value.