Ishan Dyes & Chemicals , a key player in the chemical industry, has taken a significant step to strengthen its promoter holding through a preferential allotment of convertible equity warrants. The company's Board of Directors approved the issuance of 45,84,872 convertible equity warrants to two promoters on September 20, potentially increasing the promoter group's stake in the company.

Warrant Allotment Details

The allotment was made to two key promoters of the company:

1. Piyushbhai Natvarlal Patel: 22,92,436 warrants
2. Anilaben Piyushbhai Patel: 22,92,436 warrants

These warrants are convertible into an equal number of equity shares within 18 months from the date of allotment, providing the promoters with the option to increase their stake in the company.

Impact on Promoter Holding

The issuance of these warrants has the potential to significantly impact the promoter group's holding in Ishan Dyes & Chemicals:

• Pre-allotment promoter holding: 46.73% (on a fully diluted basis)
• Post-allotment promoter holding: 46.81% (on a fully diluted basis)

This slight increase in percentage terms represents a substantial addition of 45,84,872 shares to the promoter group's holding upon full conversion of the warrants.

Changes in Share Capital

The warrant issuance has implications for the company's share capital structure:

Individual Promoter Stakes

The allotment will particularly boost the holdings of the two participating promoters:

Piyushbhai Natvarlal Patel

Anilaben Piyushbhai Patel

Regulatory Compliance

In compliance with SEBI regulations, the company has made the necessary disclosures under Regulation 29(2) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This ensures transparency in the preferential allotment process and its impact on the company's shareholding pattern.

Trading Window Closure

In a separate announcement, Ishan Dyes & Chemicals has informed that the trading window for dealing in the company's equity shares will be closed from October 1 until 48 hours after the declaration of the unaudited standalone financial results for the quarter and half-year ending September 30. This closure applies to designated persons and their immediate relatives, in accordance with SEBI regulations on insider trading.

The preferential allotment of convertible warrants to promoters signals a vote of confidence in the company's future prospects. Investors and market watchers will be keen to observe how this move impacts the company's performance and market perception in the coming months.

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.