Fratelli Vineyards Boosts Equity Base Through Warrant Conversion

Fratelli Vineyards Limited , a prominent player in the Indian wine industry, has recently strengthened its equity base through a strategic warrant conversion. The company has allotted 44,500 new equity shares, each with a face value of Rs. 10.00, at an issue price of Rs. 300.00 per share. This move comes as part of the company's ongoing efforts to bolster its capital structure and support future growth initiatives.

Key Details of the Allotment

The allotment stems from the conversion of warrants originally issued on August 23, 2024, on a preferential basis. Here are the crucial aspects of this corporate action:

Aspect	Details
Number of Shares Allotted	44,500
Face Value per Share	Rs. 10.00
Issue Price per Share	Rs. 300.00
Allottee	Shobha Sekhri (Promoter)
Total Amount Raised	Rs. 1,33,50,000.00

Impact on Share Capital

The warrant conversion has led to a modest increase in the company's paid-up equity share capital:

Pre-allotment: Rs. 43,42,78,940.00 (4,34,27,894 equity shares)
Post-allotment: Rs. 43,47,23,940.00 (4,34,72,394 equity shares)

Financial Implications

Fratelli Vineyards received Rs. 1,00,12,500.00 as the balance subscription amount, representing 75% of the total consideration. The allottee had previously paid 25% at the time of warrant allotment, adhering to the standard practice for such preferential issues.

Shareholding Changes

The allotment has slightly altered the promoter shareholding:

Shareholder	Pre-Issue Holding	Post-Issue Holding
Shobha Sekhri	31,76,048 (7.31%)	32,20,548 (7.41%)

This increase, though marginal, reinforces the promoter's commitment to the company's long-term prospects.

Regulatory Compliance

The allotment was made in compliance with the Securities and Exchange Board of India (SEBI) regulations, specifically under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This ensures transparency and adherence to regulatory standards in the capital markets.

Conclusion

This warrant conversion by Fratelli Vineyards represents a strategic move to enhance its equity base. While the immediate impact on the overall share capital is modest, it signals ongoing investor confidence, particularly from the promoter group. As the Indian wine industry continues to evolve, such capital actions may play a crucial role in positioning Fratelli Vineyards for future growth opportunities and market expansion.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.03%	-3.52%	-19.26%	-20.37%	-58.15%	-67.49%

Fratelli Vineyards Limited , a leading Indian wine producer, announced a significant move by its promoter and promoter group members to strengthen their commitment to the company. The promoters have converted warrants into equity shares, resulting in a fresh capital infusion of Rs 3.38 crore.

Key Details of the Transaction

Conversion Price: Rs 300 per share
Number of Warrants Converted: 1,12,500
New Equity Shares Issued: 1,12,500
Total Capital Infusion: Rs 3,37,50,000

Breakdown of Warrant Conversion

Allottee	Category	Shares Allotted	Amount Paid (Rs)
Ms. Puja Sekhri	Promoter	30,000	90,00,000
Mr. Gaurav Sekhri	Promoter	30,000	90,00,000
Mrs. Aarti Sekhri	Promoter	30,000	90,00,000
Mrs. Shobha Sekhri	Promoter	30,000	90,00,000
M/s Chin Min Developers Private Limited	Promoter Group	30,000	90,00,000

Impact on Shareholding

Pre-conversion Promoter Shareholding: 56.91%
Post-conversion Promoter Shareholding: 57.06%

The conversion price of Rs 300 per share is notably higher than the current market price, underscoring the promoters' confidence in the company's future prospects.

Management Commentary

Mr. Gaurav Sekhri, Chairman and Managing Director of Fratelli Vineyards Limited, commented on the development: "The promoters have reaffirmed their confidence in Fratelli's vision and growth strategy. This capital infusion reinforces the Company's financial strength and will be utilized to support its ongoing business operations, enhance operational efficiencies, and further consolidate its position in the market, while continuing to build on the Company's strong brand presence."

Company Overview

Fratelli Vineyards Limited, formerly known as Tinna Trade Limited, holds a significant position in the Indian wine market with nearly one-third market share. The company is renowned for its commitment to quality, innovation, and sustainable viticulture. Its flagship labels, Sette and J'NOON, have established Fratelli as a benchmark for premium Indian wines.

Additional Corporate Actions

In the same board meeting, Fratelli Vineyards also approved entering into a loan agreement with its wholly-owned subsidiary, Fratelli Wines Private Limited. The unsecured loan, not exceeding Rs 12 crore, will be used for general corporate purposes and business needs of the subsidiary.

This series of strategic moves highlights Fratelli Vineyards' focus on strengthening its market position and supporting its growth initiatives in the dynamic Indian wine industry.