Le Lavoir Limited, a company listed on the BSE (Security Code: 539814), has made a significant move in the capital markets by approving and allotting convertible warrants to non-promoter entities. This decision, taken during a board meeting on October 15, 2025, marks a notable development for the company's financial structure and potential future growth.

Key Details of the Warrant Allotment

• Number of Warrants: 12,66,000 (Twelve Lakhs Sixty-Six Thousand)
• Issue Price: Rs 264.75 per warrant
• Face Value of Resulting Equity Share: Rs 10.00
• Premium per Share: Rs 254.75
• Conversion Ratio: One warrant convertible into one equity share
• Conversion Period: Within 18 months from the date of allotment
• Total Upfront Payment Received: Rs 8.38 crore (25% of the total issue price)

Allotment Breakdown

The warrants were allotted to 15 individuals and one company, all belonging to the non-promoter category. Here's a breakdown of the top allottees:

Financial Implications

1. Immediate Capital Infusion: The company has received an upfront payment of Rs 8.38 crore, representing 25% of the total issue price.
2. Potential Future Inflow: If all warrants are converted, Le Lavoir Limited stands to receive an additional Rs 25.14 crore, bringing the total to approximately Rs 33.52 crore.

Regulatory Compliance

The allotment was conducted in accordance with Chapter V of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, ensuring compliance with regulatory requirements for preferential issues.

Future Outlook

This move by Le Lavoir Limited could potentially lead to:

1. Strengthened capital base for future expansion or debt reduction
2. Increased interest from non-promoter investors in the company's growth story
3. Possible changes in the company's shareholding pattern upon warrant conversion

Investors and market watchers will likely keep a close eye on Le Lavoir Limited's utilization of these funds and any subsequent corporate actions in the coming months.

Le Lavoir has made a significant commitment regarding its proposed convertible warrants issue through preferential basis. The company has provided an undertaking to appoint a monitoring agency if the issue size surpasses Rs. 90.00 crores, demonstrating its dedication to transparency and regulatory compliance.

Key Points of the Undertaking

• Current Issue Size: The proposed preferential issue is currently below Rs. 100.00 crores, which doesn't mandate the appointment of a monitoring agency as per SEBI regulations.
• Voluntary Commitment: Le Lavoir has voluntarily committed to appointing a monitoring agency if the issue size exceeds Rs. 90.00 crores.
• Regulatory Context: According to Regulation 82 of the SEBI (ICDR) Regulations, 2018, a monitoring agency is mandatory only for issues exceeding Rs. 100.00 crores.

Company's Statement

Sachin Kapse, Managing Director of Le Lavoir, signed the undertaking, which states:

"We hereby undertake to appoint Monitoring Agency, if the issue size is more than Rs. 90.00 Crores."

This commitment goes beyond the current regulatory requirements, potentially offering additional assurance to investors participating in the convertible warrants issue.

Implications for Investors

The company's proactive approach in committing to appoint a monitoring agency at a lower threshold than required by regulations could be seen as a positive signal to the market. It suggests a commitment to transparency and proper utilization of funds, which may be particularly relevant for investors considering participation in the preferential issue.

About the Convertible Warrants Issue

While specific details about the convertible warrants issue are limited in the provided information, it's clear that Le Lavoir is proceeding with a preferential allotment. Convertible warrants give holders the right to convert them into equity shares of the company at a predetermined price within a specified time frame.

Investors and market watchers will likely keep a close eye on the final issue size and any subsequent announcements regarding the appointment of a monitoring agency, should the issue exceed the Rs. 90.00 crore threshold set by the company.

The undertaking was submitted to BSE Limited, where Le Lavoir's shares are listed. As the preferential issue progresses, more details may emerge about the terms, pricing, and potential impact on the company's capital structure.