Newtime Infrastructure Boosts Capital with 2.35 Crore Compulsory Convertible Preference Shares

Newtime Infrastructure Limited , a company listed on the BSE, has made a significant move to strengthen its capital structure. The company's board has approved the allotment of 2,35,50,530 compulsory convertible preference shares (CCPS), each with a face value of Rs. 10, on a preferential basis. This decision comes as part of a strategic variation of existing non-convertible preference shares.

Key Details of the Allotment

The allotment process involved two key players:

Allottee	RNCPS Held	CCPS Allotted
MGR Investment Private Limited	3,15,600	18,84,061
Atambhu Buildwell Private Limited	36,29,360	2,16,66,469
Total	39,44,960	2,35,50,530

This allotment was made by converting 39,44,960 10% Non-Convertible Non-Cumulative Redeemable Preference Shares (RNCPS) into CCPS.

Impact on Capital Structure

The allotment has resulted in a substantial increase in Newtime Infrastructure's issued and paid-up capital:

Previous capital: Rs. 58.43 crore
New capital: Rs. 78.03 crore

Breakdown of New Capital Structure

The company's updated capital structure now comprises:

52,48,38,000 equity shares of Re. 1 each, totaling Rs. 52,48,38,000
20,00,000 1% Non-Convertible Redeemable Preference Shares of Rs. 10 each, amounting to Rs. 20,00,00,000
40 10% Non-Convertible Redeemable Preference Shares of Rs. 10 each, totaling Rs. 400
2,35,50,530 10% Compulsory Convertible Preference Shares of Rs. 10 each, amounting to Rs. 23,55,05,300

This corporate action demonstrates Newtime Infrastructure's efforts to optimize its capital structure. Investors and market watchers may want to keep an eye on how this capital restructuring impacts the company's financial strategies and performance.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.54%	-2.95%	-4.56%	-28.35%	-75.00%	-80.21%

Newtime Infrastructure Limited (BSE: 531959) has received a significant boost to its capital raising plans. The BSE Limited has granted in-principle approval for the company to issue 2,35,50,530 compulsorily convertible preference shares (CCPS) on a preferential basis to its promoters.

Key Details of the Preferential Issue

Parameter	Details
Number of CCPS	2,35,50,530
Face Value	Rs. 1.00 each
Minimum Issue Price	Rs. 9.50 per share
Total Issue Size	Up to Rs. 223.50 crore
Nature of Shares	10% Compulsorily Convertible Preference Shares
Allottees	Promoters

Implications and Next Steps

Capital Infusion

The preferential issue, if fully subscribed, could bring in up to Rs. 223.50 crore to Newtime Infrastructure, significantly bolstering its financial position.

Regulatory Compliance

The company must now comply with all regulatory requirements and obtain separate listing approval for the shares.

Conversion to Equity

As these are compulsorily convertible preference shares, they will eventually convert into equity shares, potentially altering the company's equity structure in the future.

Promoter Commitment

The preferential issue to promoters signals their continued commitment and confidence in the company's prospects.

Recent Financial Performance

Newtime Infrastructure recently published its unaudited financial results for the quarter and half-year ended September 30. While specific figures are not provided in the available data, investors interested in the company's performance can access these results on the company's website ( www.newtimeinfra.in ) and the BSE website ( www.bseindia.com ).

The approval for this substantial preferential issue comes at a time when companies are seeking to strengthen their capital base. For Newtime Infrastructure, this move could provide the financial flexibility needed for its future growth plans and operations.

Investors and market participants will be keenly watching how the company utilizes these funds and the impact on its business performance in the coming quarters.