Kesar India Limited , a company listed on the BSE, has made a significant move to strengthen its capital structure through a preferential allotment of warrants and equity shares. The company, which operates in the real estate sector, completed this strategic allotment targeting both promoter and non-promoter categories.

Allotment Details

The preferential allotment comprised:

• 64,76,559 fully convertible warrants for cash
• 12,57,142 fully convertible warrants partly for cash and partly against loan conversion
• 86,856 equity shares for cash

All securities were issued at a face value of Rs. 10 each.

Impact on Share Capital

As a result of this allotment, Kesar India Limited's equity share capital has seen a notable increase:

The total diluted share capital after the acquisition stands at Rs. 32,53,33,570, representing 3,25,33,357 equity shares.

Promoter Group Holdings

The allotment has significantly bolstered the promoter group's stake in the company. Key members of the promoter group include:

• Gopal Gupta
• Sachin Gopal Gupta
• Yash Gopal Gupta
• Sangeeta Gopalchand Gupta
• Pankhuri Yash Gupta
• Shweta Sachin Gupta

Corporate entities Kesar Lands Private Limited and Kesar Infracon Private Limited are also part of the promoter group.

Post-allotment, the promoter group's total holding has increased to 2,19,90,343 shares, representing 74.73% of the total share capital and 67.59% of the diluted share capital.

Individual Allocations

Notable allocations within the promoter group include:

Regulatory Compliance

The company has duly filed the necessary disclosures under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Yash Gopal Gupta, representing the promoter and promoter group, submitted the required intimation to the BSE.

This strategic move by Kesar India Limited appears aimed at consolidating the promoter group's position while also bringing in additional capital for the company's operations and growth initiatives in the real estate sector.

Kesar , a prominent player in the real estate sector, has successfully raised Rs. 273.70 crore through a strategic preferential allotment of warrants and equity shares. The company's Preferential Issue Committee approved this significant capital infusion on September 18, marking a pivotal moment in Kesar's financial strategy.

Breakdown of the Allotment

The preferential issue comprises three main components:

1. Fully Convertible Warrants to Promoters and Non-Promoters: The company allotted 64,76,559 fully convertible warrants at Rs. 350.00 per warrant, raising Rs. 226.70 crore. This allotment was distributed among promoters, promoter group entities, and non-promoter investors.

2. Warrants for Promoter Group with Loan Conversion: An additional 12,57,142 warrants were allotted to promoter group members, raising Rs. 44.00 crore. This allocation includes provisions for converting outstanding unsecured loans, with Rs. 11.00 crore adjusted towards 25% of the application amount and the remaining Rs. 33.00 crore to be paid in cash upon warrant conversion.

3. Equity Shares to Non-Promoters: Kesar issued 86,856 equity shares at Rs. 350.00 per share to non-promoter entities, generating Rs. 3.04 crore.

Impact on Share Capital

Following these allotments, Kesar's paid-up equity share capital has increased to Rs. 24.80 crore, now comprising 2,47,99,656 equity shares with a face value of Rs. 10.00 each.

Diverse Investor Participation

The preferential allotment saw participation from 38 different investors across promoter and non-promoter categories, indicating strong confidence in the company's future prospects. Notable allotments include:

*Partly through conversion of unsecured loans

Strategic Implications

This substantial capital raise is likely to strengthen Kesar's financial position, potentially fueling growth initiatives and expansion plans in the real estate sector. The mix of promoter and non-promoter participation suggests a balanced approach to fundraising while maintaining promoter confidence in the company's direction.

Regulatory Compliance

The allotment was conducted in accordance with SEBI regulations, as confirmed in the company's filing to the BSE Limited. The Preferential Issue Committee meeting, which approved these allotments, was held on September 18, from 16:30 to 16:45 hours.

As Kesar moves forward with this enhanced capital structure, market observers will be keen to see how the company deploys these funds to drive growth and create value for its shareholders in the competitive real estate market.