Gemstone Investments has announced a significant corporate action that could potentially reshape its capital structure. The company's Board of Directors has approved the allotment of 19,98,40,000 convertible warrants at a price of Rs 2.50 per warrant on a preferential basis to non-promoters.

Key Details of the Allotment

• Total Warrants: 19,98,40,000
• Price per Warrant: Rs 2.50
• Conversion Ratio: One equity share for one warrant
• Face Value of Resulting Shares: Re 1 each
• Allottee Category: Non-promoters

Significance of the Move

This decision follows a special resolution passed by the company's members on September 30, 2025. The allotment is in compliance with Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as well as Sections 62 and 42 of the Companies Act, 2013.

Allotment Distribution

The warrants have been allotted to a diverse group of non-promoter entities and individuals. Here's a breakdown of the top allottees:

Potential Impact

The allotment of these convertible warrants may have several implications for Gemstone Investments:

1. Capital Infusion: If all warrants are converted, it could result in a capital infusion of approximately Rs 49.96 crore (19,98,40,000 * Rs 2.50).

2. Equity Dilution: Full conversion would lead to the issuance of 19,98,40,000 new equity shares, which may dilute the existing shareholding structure.

3. Non-Promoter Stake: The allotment to non-promoters may alter the company's ownership structure, potentially increasing the non-promoter stake in the company.

4. Future Growth: The additional capital raised through this allotment could be used for various purposes such as expansion, debt reduction, or funding new projects, depending on the company's strategic plans.

It's important to note that the conversion of these warrants into equity shares is subject to the receipt of the minimum subscription amount as prescribed under SEBI ICDR Regulations, 2018.

Investors and stakeholders should keep a close watch on future announcements from Gemstone Investments regarding the utilization of funds and any strategic decisions that may follow this corporate action.

Gemstone Investments Limited, a Mumbai-based financial services company, has announced its unaudited financial results for the second quarter and half-year ended September 30, 2025. The company reported a notable increase in profitability despite a slight dip in half-yearly revenue.

Financial Highlights

Key Takeaways

• Revenue Growth: Gemstone Investments saw an 18.9% year-on-year increase in quarterly revenue, rising from ₹31.68 lakhs in Q2 FY2025 to ₹37.68 lakhs in Q2 FY2026.
• Profit Surge: The company's profit for Q2 FY2026 stood at ₹16.83 lakhs, marking a 17.8% increase from ₹14.29 lakhs in the same quarter of the previous year.
• Half-Yearly Performance: Despite the strong quarterly performance, the half-yearly revenue experienced a 15.2% decline, dropping from ₹86.79 lakhs in H1 FY2025 to ₹73.57 lakhs in H1 FY2026.
• Earnings Per Share: The basic and diluted earnings per share for continuing operations in Q2 FY2026 were reported at ₹0.02.

Balance Sheet Strength

As of September 30, 2025, Gemstone Investments reported total assets of ₹2,521.91 lakhs.

Management Approval and Audit Status

The Board of Directors of Gemstone Investments Limited approved these financial results in a meeting held on November 11, 2025. The results have undergone a limited review by the statutory auditors, Rishi Sekhri and Associates.

Cash Flow Analysis

The cash flow statement reveals:

• Operating Activities: The company generated a positive cash flow of ₹83.59 lakhs from operating activities in the first half of FY2026, compared to a negative ₹42.42 lakhs in the previous year.
• Investing Activities: There was a cash outflow of ₹191.96 lakhs used in investing activities, primarily due to the purchase of immovable property worth ₹190.80 lakhs.
• Financing Activities: ₹0.01 lakhs were spent on finance costs.

Conclusion

Gemstone Investments Limited has demonstrated growth in its quarterly performance, with increases in both revenue and profitability. However, the decline in half-yearly revenue suggests some challenges in maintaining consistent growth. The significant investment in immovable property indicates potential diversification of the company's asset base or expansion of operational capabilities.