Granules India Limited has successfully completed a significant preferential allotment of securities, marking a substantial capital raising exercise. The Share Transfer and Stakeholders Relationship Committee of the Board of Directors approved the allotment on February 23, 2026, following in-principle approvals from stock exchanges received on February 10, 2026.

Convertible Warrants Allotment Details

The company allotted 2,50,00,000 convertible warrants on a preferential basis to members of both promoter group and non-promoter investor categories. These warrants are convertible into an equivalent number of fully paid equity shares with a face value of ₹1 each, priced at ₹585 per warrant.

The warrants can be exercised in one or more tranches within 18 months from the allotment date. Investors have paid 25% of the consideration upfront, amounting to ₹365.625 crores, with the remaining 75% payable upon conversion to equity shares.

Promoter Group Participation

Among the promoter group, Mrs. Chigurupati Uma Devi received the largest allocation of 2,48,80,342 warrants, which will increase her shareholding from 3.81% to 12.51% upon full conversion. Other family members including Mrs. Chigurupati Priyanka, Mrs. Pragnya Chigurupati, and Mr. Harsha Chigurupati also participated in the allotment.

Equity Shares Allotment

Simultaneously, the company allotted 51,28,205 fully paid-up equity shares exclusively to non-promoter category investors at ₹585 per share, raising ₹300 crores. Eight institutional investors from the 360 ONE group participated in this equity allotment.

Impact on Share Capital

Following these allotments, the company's capital structure has been significantly enhanced. The paid-up equity share capital increased from ₹24,26,68,716 to ₹24,77,96,921, representing 24,77,96,921 fully paid-up equity shares of ₹1 each.

On a diluted basis, assuming full conversion of all warrants, the total equity share capital will reach ₹27,27,96,921, comprising 27,27,96,921 fully paid-up equity shares.

Regulatory Compliance and Terms

The preferential allotment was conducted in accordance with Chapter V of SEBI ICDR Regulations and other applicable laws. The securities were issued on a private placement basis, with the issue price determined as per Regulation 164 of the SEBI ICDR Regulations. All allotted equity shares rank pari-passu with existing equity shares of the company. If warrant holders fail to exercise their conversion rights within the stipulated 18-month period, the unexercised warrants will lapse and the 25% consideration paid will be forfeited by the company.

Granules India Limited announced its unaudited financial results for the third quarter and nine months ended December 31, 2025, showcasing strong performance across both standalone and consolidated operations. The pharmaceutical company's Board of Directors approved these results at their meeting held on January 23, 2026.

Consolidated Financial Performance

The company delivered robust consolidated results for Q3 FY26, demonstrating strong operational efficiency across its global operations.

For the nine months ended December 31, 2025, consolidated revenue reached ₹38,950.34 million compared to ₹32,841.79 million in the corresponding period, marking significant year-over-year growth. Net profit for the nine-month period stood at ₹3,934.53 million versus ₹3,494.85 million in the previous year.

Standalone Results Analysis

The standalone financial performance also reflected strong fundamentals, with the company maintaining healthy margins despite operational challenges.

The nine-month standalone revenue totaled ₹25,971.39 million compared to ₹22,621.37 million in the previous year, with net profit reaching ₹3,016.80 million against ₹2,252.82 million.

Operational Developments and Challenges

The company faced regulatory challenges during the period, with the Gagillapur facility receiving a USFDA warning letter in February 2025 following an inspection during August-September 2024. In response, Granules voluntarily paused manufacturing and distribution operations at the facility during September 2024 to conduct comprehensive risk assessments and address USFDA inspection observations.

The company has initiated a comprehensive remediation plan involving three independent consultants to enhance existing procedures and implement new protocols. This situation impacted revenue due to production slowdown and increased expenses, primarily consultancy costs and air freight charges.

Strategic Acquisitions and Expansion

Granules continued its expansion strategy through strategic acquisitions during the period:

Exceptional items for the nine months included transaction costs of ₹121.60 million related to the Senn Chemicals AG acquisition, alongside settlements of ongoing litigations and investment disposal gains.

Capital Raising Initiatives

The Board of Directors and shareholders approved significant capital-raising measures during the period. The company plans to raise funds through issuance of up to 25,000,000 convertible warrants at ₹585.00 per warrant, aggregating up to ₹14,625.00 million. Additionally, the company will issue up to 5,128,205 fully paid equity shares at ₹585.00 per share, totaling ₹3,000.00 million.

These capital-raising initiatives are subject to regulatory approvals and will support the company's growth strategy and operational expansion plans. The convertible warrants will be convertible into equivalent equity shares within 18 months from the allotment date.