ITCONS e-Solutions Limited has announced the lapse of 60.60 lakh warrants and forfeiture of upfront margin worth ₹10.76 crore following the expiry of the conversion period on January 30, 2026. The Board of Directors approved this decision during their meeting held on the same date, as the warrant holders failed to exercise their conversion option within the stipulated timeframe.

Warrant Allotment Details

The company had originally allotted 1.00 crore warrants on a preferential basis on July 29, 2024. Each warrant was priced at ₹71.00 and entitled the holder to apply for one equity share of face value ₹10.00 within 18 months from the allotment date.

Warrant Exercise and Lapse Summary

Out of the total warrants allotted, a significant portion remained unexercised by the deadline. The company disclosed the complete breakdown of warrant utilization and the resulting financial impact.

Major Warrant Holders Affected

The lapse affected 18 allottees, with Gaurav Mittal being the largest affected holder with 25.96 lakh warrants lapsed, resulting in forfeiture of ₹4.61 crore. Swati Jain followed with 12.57 lakh lapsed warrants worth ₹2.23 crore in forfeited amount.

Regulatory Compliance and Impact

The forfeiture was executed in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The company confirmed that there would be no change in capital structure due to the warrant lapse. The forfeited amount of ₹10.76 crore represents the 25% upfront margin collected during the original warrant allotment, which now becomes part of the company's reserves.

Financial Implications

The warrant lapse results in the company retaining the upfront margin without issuing additional equity shares. This development means the company benefits from the forfeited funds while avoiding dilution of existing shareholding that would have occurred if the warrants were converted to equity shares.

ITCONS e-Solutions has announced the successful allotment of 8,70,200 fully paid-up equity shares of Rs. 10/- each following warrant conversion by 11 investors on January 29, 2026. The allotment was completed upon receipt of the remaining exercise price, generating significant proceeds for the company.

Warrant Conversion Details

The Board of Directors approved the conversion of warrants into equity shares at their meeting held on January 29, 2026. The allotment involved receipt of the remaining exercise price of Rs. 53.25/- per warrant, representing 75% of the total warrant exercise price of Rs. 71/- per warrant.

Investor-wise Allocation

The warrant conversion involved both promoter and public category investors, with detailed allocation across different stakeholders:

The promoter category accounted for the largest portion of conversions, with Mr. Gaurav Mittal converting 3,00,000 warrants and Mrs. Swati Jain converting 1,88,200 warrants.

Impact on Share Capital

The warrant conversion has resulted in a significant increase in the company's paid-up equity capital structure:

The newly allotted equity shares rank pari passu with existing equity shares of the company in all respects.

Outstanding Warrants Status

Following the current conversion, the company maintains a substantial number of outstanding warrants available for future conversion:

The remaining warrant holders are entitled to convert their warrants into an equal number of equity shares by paying Rs. 53.25/- per warrant within 18 months from the original warrant allotment date of July 29, 2024. This provides the company with potential additional capital raising opportunities of approximately Rs. 36.73 crore if all remaining warrants are exercised.