Dipna Pharmachem Allots 2.99 Crore Convertible Warrants at Rs 13.05 Each on Preferential Basis

Dipna Pharmachem Limited , a pharmaceutical company based in Ahmedabad, has made a significant move in the capital markets by approving and allotting convertible warrants on a preferential basis. The company's Board of Directors has given the green light for the issuance of 2,98,74,000 convertible warrants at a price of Rs 13.05 per warrant to both promoter and non-promoter categories.

Key Details of the Warrant Allotment

• Number of Warrants: 2,98,74,000
• Issue Price: Rs 13.05 per warrant (Face value: Rs 10.00, Premium: Rs 3.05)
• Conversion Ratio: Each warrant is convertible into one equity share
• Conversion Period: Within 18 months from the date of allotment
• Total Consideration Collected (25%): Rs 9,74,63,925.00

Allotment Breakdown

The warrants were allotted to 23 individuals and entities, with the largest allocations going to:

1. Keyur Dipakkumar Shah: 96,00,000 warrants
2. Ashok Dilipkumar Jain: 94,02,000 warrants

Financial Terms

The company has collected 25% of the total consideration amount, which amounts to Rs 9,74,63,925.00. The remaining 75% of the issue price must be paid by the warrant holders before exercising their conversion option.

Corporate Governance

The decision to allot these warrants was made during a Board of Directors meeting held at the company's registered office in Ahmedabad. The meeting commenced at 3:30 PM and concluded at 4:20 PM, demonstrating the company's commitment to transparency in its corporate actions.

Regulatory Compliance

Dipna Pharmachem Limited has issued these warrants in accordance with the provisions of Chapter V of SEBI (ICDR) Regulations, 2018. This move aligns with the regulatory framework governing preferential issues in the Indian capital markets.

Implications for Investors

This warrant issue represents a significant capital raising exercise for Dipna Pharmachem Limited. If all warrants are converted into equity shares, it will lead to a substantial increase in the company's equity base. Investors should note that this may have implications for the company's equity structure and potentially its stock price in the future.

The preferential allotment to both promoter and non-promoter categories suggests a balanced approach to capital raising, potentially indicating confidence in the company's prospects from both insiders and external investors.

As the conversion period extends up to 18 months from the allotment date, market participants will be keenly watching the company's performance and any decisions by warrant holders to exercise their conversion rights.