Ind-Swift Laboratories Limited has completed a significant preferential allotment of equity shares following the conversion of fully convertible warrants. The Preferential Issue Committee of the Board of Directors approved the allotment during their meeting held on February 24, 2026, marking an important milestone in the company's capital structure expansion.

Warrant Conversion Details

The allotment involved the conversion of 51,00,000 fully convertible warrants into equity shares by Essix Biosciences Limited, a promoter and promoter group entity. These warrants were originally allotted on August 30, 2024, and have now been successfully converted into equity shares.

Impact on Share Capital

Following the completion of this preferential allotment, Ind-Swift Laboratories' capital structure has been significantly enhanced. The paid-up equity share capital has increased substantially, reflecting the company's successful capital raising initiative.

Regulatory Compliance

The preferential allotment was conducted in accordance with Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and other applicable laws. The company has fulfilled all regulatory requirements under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Preferential Issue Committee meeting commenced at 5:00 PM and concluded at 5:30 PM on February 24, 2026. The conversion represents the exercise of rights by Essix Biosciences Limited, converting their entire holding of 51,00,000 warrants into equity shares at the predetermined price of ₹121 per share.

Corporate Governance

The allotment process demonstrates Ind-Swift Laboratories' commitment to transparent corporate governance and regulatory compliance. The company has promptly informed both BSE Limited and National Stock Exchange of India Limited about the outcome of the preferential issue committee meeting, ensuring all stakeholders are kept informed of material developments affecting the company's capital structure.

Ind-Swift Laboratories Limited has filed its quarterly monitoring agency report for the quarter ended December 31, 2025, concerning the utilization of funds raised through its preferential issue of fully convertible warrants worth Rs. 314.60 crore. The report, prepared by CARE Ratings Limited as the appointed monitoring agency, provides insights into the deployment and utilization of the raised capital.

Fund Utilization Status

The monitoring report reveals that no proceeds were utilized during Q3FY26, with the company maintaining Rs. 0.46 crore as unutilized funds at the quarter's end. The preferential issue, which involved fully convertible warrants allotted on August 30, 2024, has an 18-month exercise period for warrant holders.

Key Monitoring Observations

The monitoring agency confirmed several important aspects of fund management:

• No Deviations: All utilization remains aligned with the disclosures in the offer document
• Regulatory Compliance: No material deviations requiring shareholder approval were observed
• Statutory Approvals: Relevant approvals mentioned in the placement document are in place, with additional approvals to be obtained as required for specific projects

Temporary Fund Movement

The report highlighted a notable transaction during Q3FY26 where Rs. 0.45 crore was temporarily transferred from the preferential issue account to the company's current account. This transfer was made in anticipation of a land purchase transaction but was reversed after 69 days when the transaction could not be finalized within expected timelines. The company clarified that there was no diversion or misuse of preferential issue proceeds at any point.

Market Volatility Concerns

The monitoring agency noted that the company's share price experienced high volatility during the three months ended December 31, 2025, even falling below the warrant exercise price in December 2025. This development could potentially affect warrant holders' decisions regarding conversion, which may impact the viability of the stated objects if warrants are allowed to lapse.

Implementation Timeline

The company has successfully completed the utilization of funds allocated for working capital requirements and general corporate purposes ahead of schedule, both being fully deployed in Q2FY26. The remaining categories continue to progress according to their respective timelines, with no delays reported in the implementation of stated objects.