Dhanashree Electronics Allots 1.61 Crore Convertible Warrants at Rs. 30 Each
Dhanashree Electronics Limited's board has approved the allotment of 1,61,41,000 convertible warrants at Rs. 30.00 each to promoter group entities and public investors. The total potential capital raise is Rs. 48.42 crore upon full conversion, with an initial payment of 25% (Rs. 12.10 crore). The warrants have a conversion period of 18 months. This move could lead to an expanded equity base, with the company's paid-up share capital potentially increasing from Rs. 14.19 crore to Rs. 47.30 crore if all warrants are converted.

*this image is generated using AI for illustrative purposes only.
Dhanashree Electronics Limited has taken a significant step to raise capital through a preferential allotment of convertible warrants. The company's board has approved the allotment of 1,61,41,000 convertible warrants at Rs. 30.00 each to promoter group entities and public investors.
Key Details of the Allotment
| Particulars | Details |
|---|---|
| Total Number of Warrants | 1,61,41,000 |
| Price per Warrant | Rs. 30.00 |
| Total Potential Capital Raise | Rs. 48.42 crore (upon full conversion) |
| Initial Payment | 25% of the consideration amount (Rs. 12.10 crore) |
| Conversion Period | Within 18 months |
Implications and Potential Outcomes
This preferential allotment of convertible warrants may have several implications for Dhanashree Electronics:
Capital Infusion: Upon full conversion, the company could raise approximately Rs. 48.42 crore, which may be used for various corporate purposes such as expansion, debt reduction, or working capital requirements.
Expanded Equity Base: If all warrants are converted, the company's paid-up share capital would increase from Rs. 14.19 crore to Rs. 47.30 crore.
Promoter and Public Participation: The allotment to both promoter group entities and public investors may indicate confidence in the company's future prospects and broader market interest.
Dilution Effect: The conversion of warrants into equity shares would lead to dilution of existing shareholding. However, this is balanced against the potential benefits of the capital raised.
Financial Flexibility: The 18-month conversion period provides the company and warrant holders with flexibility in timing the full conversion based on market conditions and company performance.
Investors and market watchers may keep a close eye on how Dhanashree Electronics utilizes this potential capital infusion and its impact on the company's future growth trajectory. As always, potential investors should conduct their own research and consider their risk tolerance before making investment decisions based on this corporate action.
Historical Stock Returns for Dhanashree Electronics
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.05% | -18.56% | +2.12% | +43.24% | +253.22% | +1,537.07% |






























