NewsCorporate ActionsMardia Samyoung Capillary Tubes Approves Rs. 97.88 Crore Warrant Issue, Increases Authorized Share CapitalMardia Samyoung Capillary Tubes Approves Rs. 97.88 Crore Warrant Issue, Increases Authorized Share Capital
MSCTC, an Indo-Korean joint venture, has approved significant corporate actions. The company will increase its Authorized Share Capital from Rs. 29.45 crores to Rs. 80.00 crores. Additionally, MSCTC plans to issue 7.25 crore fully convertible equity warrants at Rs. 13.50 each through preferential allotment, potentially raising Rs. 97.88 crores. Torextron Ventures Private Limited is set to become the majority shareholder with a 63.03% stake upon full conversion. The warrants are convertible within 18 months, with 25% upfront payment required. The issue involves 17 investors and is subject to shareholder and regulatory approvals.
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MSCTC , an Indo-Korean joint venture specializing in brass and copper alloy products, has announced significant corporate actions that could reshape its capital structure and ownership.
Authorized Share Capital Increase
The company's Board of Directors has approved an increase in the Authorized Share Capital from Rs. 29.45 crores to Rs. 80.00 crores. This substantial increase of over 170% in the authorized capital provides the company with greater flexibility for future equity issuances and capital raising initiatives.
Preferential Allotment of Convertible Equity Warrants
In a move that could significantly alter its shareholding pattern, MSCTC has approved the issuance of 7.25 crore fully convertible equity warrants through a preferential allotment. These warrants, priced at Rs. 13.50 each, will raise an aggregate amount of Rs. 97.88 crores if fully subscribed and converted.
Key Features of the Warrant Issue:
- Conversion Period: The warrants are convertible into equity shares within 18 months from the date of allotment.
- Face Value: Each warrant is convertible into one equity share with a face value of Rs. 10.
- Payment Terms: Investors are required to pay 25% of the warrant price upfront with the application, with the remaining 75% due upon conversion.
Investor Composition
The preferential issue involves 17 investors, with Torextron Ventures Private Limited emerging as the largest proposed investor. Here's a breakdown of the major investors and their potential stakes:
| Investor Name | Warrants Allotted | Post-Conversion Stake |
|---|---|---|
| Torextron Ventures Private Limited | 1,30,90,200 | 63.03% |
| Patel Biralkumar Rajeshbhai | 39,50,000 | 4.97% |
| Solanki Vivek Laxmanbhai | 39,35,000 | 4.95% |
| Chavda Shaileshbhai Sonubhai | 39,40,000 | 4.95% |
| Makwana Ketan Devshibhai | 39,25,000 | 4.94% |
| Other Investors | Each below 39,15,000 | 1.02% to 4.92% each |
Implications for Ownership Structure
Upon full conversion of the warrants, Torextron Ventures Private Limited is poised to become the majority shareholder with a 63.03% stake in MSCTC. The remaining investors would hold stakes ranging from 1.02% to 4.97% each, significantly altering the company's ownership landscape.
Regulatory Compliance
The company has stated that the preferential issue will be conducted in accordance with the provisions of Chapter V of the SEBI (Issue of Capital and Disclosures Requirements) Regulations, 2018. The issue remains subject to shareholder approval and other necessary regulatory clearances.
This strategic move by MSCTC could provide the company with substantial capital for future growth initiatives while potentially bringing in new strategic investors to support its business objectives.
Historical Stock Returns for MSCTC
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.00% | +10.39% | +51.37% | +939.17% | +1,158.23% | +5,176.24% |
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