Ishan Dyes & Chemicals Limited has successfully completed a significant capital raising initiative through a preferential allotment of convertible equity warrants and fully paid-up equity shares. The company's board of directors approved the allotment in a meeting held on September 20, marking a substantial boost to its financial position.

Warrant Allotment to Promoters

The company allotted 45,84,872 convertible equity warrants to promoter group members at a price of ₹63.00 per warrant. The allottees, Piyushbhai Natvarlal Patel and Anilaben Piyushbhai Patel, each subscribed to 22,92,436 warrants. The promoters have paid ₹7.22 crore, representing 25% of the total warrant consideration, with the remaining 75% due within 18 months from the allotment date.

Equity Shares to Non-Promoters

Simultaneously, Ishan Dyes & Chemicals issued 51,72,270 fully paid-up equity shares to 25 non-promoter investors at ₹63.00 per share. This allotment raised ₹32.59 crore, with the full payment received from the non-promoter allottees.

Capital Structure Impact

Following this allotment, the company's paid-up equity share capital has increased significantly:

Key Details of the Issue

• Issue Price: Both warrants and equity shares were issued at ₹63.00 each, including a premium of ₹53.00 per share.
• Warrant Conversion: Each warrant is convertible into one fully paid-up equity share within 18 months from the allotment date.
• Unsubscribed Shares: Out of the approved 54,15,128 equity shares for non-promoters, 2,42,858 shares remained unsubscribed and were disposed of by the board.

Regulatory Compliance

The preferential issue was conducted in accordance with the provisions of the Companies Act, 2013, and SEBI regulations. The company received in-principle approvals from both BSE Limited and the National Stock Exchange of India Limited prior to the allotment.

Future Steps

Ishan Dyes & Chemicals will soon apply for listing and trading approvals for the newly issued equity shares on the stock exchanges. The additional capital is expected to strengthen the company's financial position and support its growth initiatives.

This strategic move by Ishan Dyes & Chemicals demonstrates investor confidence in the company's prospects and provides it with the necessary funds to pursue its business objectives.

Ishan Dyes & Chemicals Limited, a prominent player in the dye industry, conducted its Extra-Ordinary General Meeting (EOGM) on August 14, 2025, via video conferencing. The meeting, which lasted from 1:00 PM to 1:12 PM IST, saw the company seeking shareholder approval for significant capital-related resolutions.

Key Resolutions

The EOGM, chaired by Whole Time Director Shrinal Piyushbhai Patel, put forward three special resolutions for shareholder consideration:

1. Authorized Share Capital Increase: The company proposed to increase its authorized share capital and make consequent alterations to the Memorandum of Association.

2. Issuance of Convertible Equity Warrants to Promoters: Approval was sought to issue up to 45,84,872 convertible equity warrants at INR 63.00 per warrant to promoters. This move could potentially raise up to INR 28.88 crore.

3. Equity Share Issuance to Non-Promoters: The company proposed to issue up to 54,15,128 fully paid-up equity shares at INR 63.00 per share to non-promoters and public shareholders, aiming to raise up to INR 34.12 crore.

Voting Process

The company provided remote e-voting facilities from August 11 to August 13, 2025. Additionally, e-voting during the EOGM was made available for shareholders who hadn't participated in remote voting. Kunal Sharma, a Practicing Company Secretary, was appointed as the scrutinizer for the e-voting process.

Management's Perspective

While specific details of management comments were not provided, the company's decision to raise capital through warrant and share issuance suggests a strategic move towards expansion or strengthening its financial position.

Next Steps

The voting results and the scrutinizer's report are expected to be submitted to the stock exchanges shortly, in compliance with regulatory requirements.

This EOGM marks a significant step for Ishan Dyes & Chemicals as it seeks to bolster its capital structure. The outcome of these resolutions could have a substantial impact on the company's future growth trajectory and financial flexibility.