Expo Engineering & Projects Ltd, formerly known as Expo Gas Containers Ltd, has made a significant move to bolster its financial position by allotting convertible warrants on a preferential basis. The company's board of directors approved the allotment of 31,45,715 convertible warrants at ₹70 per warrant, raising a total of ₹22.02 crore.

Warrant Allotment Details

The warrants, each with a face value of ₹4 and a premium of ₹66, were allotted to both promoter and non-promoter categories. The breakdown of the allotment is as follows:

Terms of Allotment

The company has received 25% of the warrant issue price upfront, amounting to ₹5.51 crore. The remaining 75%, totaling ₹16.51 crore, will be payable upon conversion of the warrants into equity shares.

Conversion Rights

Warrant holders have been granted the right to convert their warrants into fully paid equity shares of the company within 18 months from the date of allotment. Each warrant is convertible into one equity share of the company.

Impact on Shareholding

The allotment is expected to have a significant impact on the company's shareholding structure. Notably, upon full conversion:

• Murtuza S. Mewawala's stake would increase from 11.33% to 15.09%
• Hasanain S. Mewawala's holding would rise from 9.27% to 8.69%
• Aegis Investment Fund PCC would see its stake grow from 3.41% to 8.45%

Regulatory Compliance

The allotment was made in accordance with the approval granted by shareholders at the Extra Ordinary General Meeting held on June 27, 2025, and the in-principle approval from BSE Ltd. The company has ensured compliance with SEBI regulations and the Companies Act, 2013.

Closing Remarks

This strategic move by Expo Engineering and Projects Ltd appears aimed at strengthening its capital base and potentially funding future growth initiatives. The successful allotment of warrants, particularly the significant participation from both promoter and non-promoter investors, may be seen as a vote of confidence in the company's future prospects.

Expo Engineering & Projects Ltd (BSE: 526614), formerly known as Expo Gas Containers Ltd, 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 convertible warrants worth Rs 22.02 crore on a preferential basis.

Warrant Issue Details

The BSE approval allows Expo Engineering & Projects to issue 31,45,715 convertible warrants. These warrants will be offered to both promoter and non-promoter categories, with each warrant priced at Rs 70.00. The pricing structure includes:

• Face value: Rs 4.00 per warrant
• Premium: Rs 66.00 per warrant

Financial Implications

The total aggregation of this warrant issue amounts to Rs 22,02,00,050.00, providing a substantial influx of capital for the company. This move is likely aimed at strengthening the company's financial position and supporting its growth initiatives.

Regulatory Compliance

The BSE has outlined several key compliance requirements for Expo Engineering & Projects:

1. Adherence to the Companies Act 2013, SEBI regulations, and other statutory provisions.
2. Strengthening of internal controls to monitor trades by proposed allottees.
3. Obtaining undertakings from allottees to prevent non-compliance with trading restrictions.

Next Steps

Following this approval, Expo Engineering & Projects must:

1. Make a listing application within twenty days from the date of allotment.
2. Comply with post-issue formalities as per SEBI regulations.

Management's Response

Hasanain S. Mewawala, Managing Director of Expo Engineering & Projects, confirmed the receipt of the in-principle approval in a communication to the BSE.

Investor Engagement

In a separate announcement, Expo Engineering & Projects revealed its participation in the upcoming "Bharat Connect Virtual Conference – Rising Star" organized by Arihant Capital. The event is scheduled for 1:00 pm, providing an opportunity for the company to engage with investors and analysts.

This series of developments indicates Expo Engineering & Projects' proactive approach to capital management and stakeholder communication, potentially positioning the company for future growth and expansion.