Godavari Drugs Limited board of directors has approved a significant preferential issue of securities during its meeting held on January 15, 2026. The pharmaceutical company announced plans to raise funds through the issuance of convertible warrants and equity shares, both priced at ₹89 per security.

Convertible Warrants Issue Details

The board approved the issuance of up to 23,60,065 convertible warrants exclusively to promoters on a preferential basis. The key parameters of this warrant issue are outlined below:

The convertible warrants will be converted into equal number of equity shares with a face value of ₹10.00 each within 18 months from the date of allotment. Failure to convert within this timeframe will result in forfeiture of the upfront amount paid along with the non-converted warrants.

Equity Shares Preferential Issue

Simultaneously, the board approved the preferential allotment of up to 25,96,935 equity shares to both promoters and non-promoters at the same issue price of ₹89.00 per share.

Shareholding Pattern Post-Allotment

Upon completion of both preferential issues and assuming full subscription and conversion of warrants, the company's shareholding structure will be restructured. Promoters will hold 51.52% of the post-issue capital, while public shareholders will maintain 48.48% stake in the company.

Regulatory Approvals and Timeline

Both preferential issues are subject to shareholder approval and receipt of applicable regulatory approvals. The company has scheduled an Extraordinary General Meeting (EGM) on Thursday, February 12, 2026, at 11:00 AM through Video Conference/OAVM to obtain shareholders' consent for these proposals.

The board has appointed Mrs. Vidya Harkut, Practicing Company Secretary, as the scrutinizer for evaluating the voting process during the EGM. The board meeting, which commenced at 2:45 PM, concluded at 3:50 PM on January 15, 2026, at the company's registered office.

Key Allottees Distribution

The convertible warrants will be distributed among nine promoter entities, with the largest allocations going to Mohit Jaju (4,00,065 warrants), Mukund Kakani (4,69,000 warrants), and Sushma Kakani (4,23,000 warrants). For equity shares, the non-promoter category includes diverse investors ranging from individual investors to investment funds and private limited companies, with allocations varying from 25,000 to 2,24,725 shares per allottee.

Godavari Drugs Limited has responded to a BSE inquiry regarding significant movement in its share price and trading volume, confirming that no unpublished price sensitive information exists that could influence the stock's performance.

Regulatory Response to BSE Inquiry

In a formal communication dated January 8, 2026, the pharmaceutical company addressed the BSE's request for clarification on the notable price and volume movement in its securities. The company's response was signed by Venkatesh Achanta, Company Secretary and Compliance Officer.

Company's Official Position

Godavari Drugs Limited confirmed that it does not possess any unpublished price sensitive information (UPSI) as defined under the SEBI (Prohibition of Insider Trading) Regulations, 2015. The company emphasized that no information requiring disclosure to stock exchanges exists that could have influenced the movement in price or volume of its securities.

The company highlighted its commitment to maintaining adequate internal controls and robust corporate governance practices to ensure compliance with applicable laws and prevent unauthorized dissemination of information.

Market Movement Attribution

The pharmaceutical company clarified that the movement in its share price and trading volume appears to be purely market-driven, based on demand and supply factors beyond the company's control. The management stated it is not in a position to comment specifically on the reasons for such market movement, given that the shares are freely traded on stock exchanges.

Regulatory Compliance Assurance

Godavari Drugs Limited reaffirmed its consistent compliance with the provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, including Regulation 30. The company provided assurance that it will continue to make all required disclosures in a timely manner as and when applicable.

The company requested the BSE to take the clarification on record, demonstrating its commitment to transparent communication with regulatory authorities and maintaining investor confidence through proper disclosure practices.