MSCTC has announced plans to issue up to 7.25 crore fully convertible equity warrants on a preferential basis, aiming to raise Rs 97.87 crore. The company's board of directors approved this decision in a meeting held on September 24, 2025, subject to shareholder approval at the upcoming Extra-Ordinary General Meeting (EGM) scheduled for October 29, 2025.

Key Details of the Warrant Issue

Allocation and Use of Funds

The warrant issue includes an allocation of 1.31 crore warrants to the promoter entity, Torextron Ventures Private Limited, with the remaining warrants distributed among 16 individual investors. MSCTC plans to utilize the proceeds for working capital requirements.

Impact on Shareholding

Post-conversion of all warrants, the promoter shareholding may decrease from the current 63.03% to 22.00% of the expanded share capital. This change reflects a significant dilution in promoter holding while increasing the public shareholding in the company.

Pricing and Valuation

The floor price for the warrants has been set at Rs 13.33 per share, based on a valuation report dated September 29, 2025. MSCTC has decided to issue the warrants at Rs 13.50 per warrant, which is above the determined floor price.

Regulatory Compliance

The company has assured compliance with all applicable laws and regulations, including SEBI ICDR Regulations. The warrants and resulting equity shares will be subject to a lock-in period as specified under SEBI regulations.

Conclusion

This warrant issue represents a significant move for MSCTC, potentially altering its capital structure and shareholding pattern. The success of this issue and subsequent conversion of warrants could provide the company with substantial working capital, potentially supporting its growth initiatives.

Shareholders and potential investors should note that the warrant conversion is optional and may occur in tranches over the 18-month period following allotment. The final impact on the company's shareholding structure will depend on the extent of warrant conversion by the allottees.

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:

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.