News Corporate Actions Fratelli Vineyards Forfeits Rs 2.72 Crore as 3.63 Lakh Warrants Lapse After Non-ConversionFratelli Vineyards Forfeits Rs 2.72 Crore as 3.63 Lakh Warrants Lapse After Non-Conversion
Fratelli Vineyards Limited forfeited Rs 2,72,36,250 after 3,63,150 warrants lapsed on February 23, 2026, due to non-conversion by allottees. The company had allotted 5,57,650 warrants in August 2024 with an 18-month conversion period, but only 1,94,500 warrants were converted. The forfeited amount represents 25% upfront payment collected during warrant allotment, in compliance with SEBI regulations.
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Fratelli Vineyards Limited has announced the forfeiture of Rs 2,72,36,250 in upfront payments following the lapse of 3,63,150 warrants that remained unconverted beyond the stipulated deadline. The development was communicated to BSE Limited on February 28, 2026, in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Warrant Allotment and Conversion Timeline
The company had originally allotted 5,57,650 warrants on August 23, 2024, on a preferential basis to various allottees. These warrants entitled holders to apply for and receive an equivalent number of equity shares within 18 months from the allotment date. The conversion period concluded on February 22, 2026, after which the unconverted warrants automatically lapsed on February 23, 2026.
Conversion Performance Analysis
| Parameter | Details |
|---|---|
| Total Warrants Allotted | 5,57,650 |
| Warrants Converted | 1,94,500 |
| Warrants Lapsed | 3,63,150 |
| Conversion Rate | 34.88% |
| Forfeited Amount | Rs 2,72,36,250 |
Out of the 19 allottees, only five individuals partially exercised their conversion rights. The conversion performance varied significantly among warrant holders, with some converting substantial portions while others failed to convert any warrants.
Major Allottee Performance
The largest warrant holders showed mixed conversion patterns:
- Ms. Puja Sekhri, Mr. Gaurav Sekhri, Ms. Aarti Sekhri, and Chin Min Developers (P) Ltd each held 1,02,150 warrants but converted only 30,000 each, leaving 72,150 warrants unconverted
- Ms. Shobha Sekhri demonstrated the highest conversion rate among major holders, converting 74,500 out of 1,02,150 warrants
- Fourteen smaller allottees holding 3,350 warrants each failed to convert any warrants
Financial Impact and Regulatory Compliance
The forfeited amount of Rs 2,72,36,250 represents 25% of the issue price that was collected upfront during warrant allotment. This forfeiture is mandated under SEBI (Issue of Capital and Disclosure Requirement) Regulations, 2018, when warrant holders fail to exercise conversion rights within the prescribed timeframe.
| Allottee Category | Forfeited Amount (Rs) |
|---|---|
| Major Holders (72,150 warrants each) | 54,11,250 each |
| Ms. Shobha Sekhri (27,650 warrants) | 20,73,750 |
| Small Holders (3,350 warrants each) | 2,51,250 each |
The company has fulfilled its regulatory obligations by promptly notifying the stock exchange about the warrant lapse and subsequent forfeiture. This development will impact the company's capital structure, as the anticipated equity dilution from full warrant conversion will not materialize, while the forfeited funds will be retained by the company.
Historical Stock Returns for Fratelli Vineyards
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.75% | +2.50% | -2.47% | -19.69% | -58.82% | +376.75% |
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