Praveg Limited has announced the cancellation of 856,976 convertible warrants following the failure of two warrant holders to exercise their conversion rights within the stipulated period. This corporate action, detailed in a regulatory filing, marks a significant development for the company's capital structure.

Warrant Cancellation Details

The company has provided specific information about the cancelled warrants:

Reasons for Cancellation

According to the company's filing, the warrants were cancelled due to the failure of the warrant holders to exercise their conversion option within the 18-month period from the date of allotment. This period ended on November 16, 2025.

Financial Implications

As a result of the non-exercise, Praveg Limited has forfeited the warrant subscription amounts paid by the holders. This action is in accordance with Regulation 169(3) of Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Regulatory Compliance

The company has informed the BSE Limited about this development, ensuring compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation was made on November 17, 2025, immediately following the expiration of the conversion period.

This cancellation of convertible warrants may have implications for Praveg Limited's capital structure and potentially its future fundraising strategies. Investors and market participants are advised to take note of this corporate action when evaluating their positions or considering investments related to Praveg Limited.

Praveg Limited , a leading eco-responsible luxury resorts company in India, reported a consolidated net loss of 96.70 million rupees in Q2, despite a year-over-year revenue increase. The company also secured a new contract for an upcoming national event.

Financial Performance

Praveg's consolidated total income for Q2 rose to 375.00 million rupees, up from 314.00 million rupees in the same period last year, marking a 19.4% increase. However, the company's profitability was significantly impacted:

• EBITDA declined to 36.00 million rupees from 64.00 million rupees year-over-year
• EBITDA margin compressed to 9.64% from 20.49%
• Net loss of 96.70 million rupees compared to a profit of 14.00 million rupees in the previous year's Q2

H1 Performance

For the first half of the fiscal year, Praveg reported:

• Consolidated total income of 7,771.00 million rupees, up 28.94% year-over-year
• EBITDA of 1,017.00 million rupees, down 62.62% year-over-year
• Net loss of 1,497.00 million rupees compared to a net profit of 217.00 million rupees in the previous year's H1

Factors Affecting Profitability

The company attributed the decline in profitability to several factors:

1. Higher operating costs at newly launched properties
2. Four seasonal properties remained closed during Q2
3. Initial ramp-up expenses related to recent expansions
4. Fixed lease commitments payable to the Government under the PPP model, which continue even during periods of lower occupancy

New Contract Secured

Praveg announced securing a new contract from the Tourism Corporation of Gujarat Limited. The contract, valued at 26.85 million rupees, involves:

• Augmentation of infrastructure facilities in existing shops at the Statue of Unity (SoU) for 31 days
• Development of a studio kitchen at the helipad ground
• Development of a theme pavilion at the maze garden at SoU

These developments are part of the preparations for Rashtriya Ekta Diwas 2025 at SOU, Kevadia, Gujarat.

Management Commentary

Vishnu Patel, Chairman of Praveg Limited, commented on the results: "H1 has demonstrated strong top-line momentum, with consolidated total income growing 28.94% to ₹77.71 crore, driven by the continued expansion of our hospitality portfolio and consistent performance in our events and advertising businesses."

He added, "While margins were impacted due to higher operating costs at newly launched properties and four seasonal properties that remained closed during Q2 and initial ramp-up expenses related to recent expansions, these effects are temporary and inherent to the scale-up phase of new destinations."

Future Outlook

Praveg remains optimistic about its future performance:

• The company now operates over 825 rooms across 17 operational resorts and one five-star hotel
• Management anticipates meaningful improvement in profitability metrics as occupancy levels mature and efficiencies normalize
• The launch of new initiatives, including the Praveg Adalaj Theme Park, is expected to strengthen the company's growth trajectory

Despite the current challenges, Praveg's management expressed confidence in delivering sustainable long-term growth and creating enduring value for all stakeholders.

Investors should note that while the company has secured a new contract and continues to expand its portfolio, the current financial performance shows significant pressure on profitability. The management's ability to turn around the bottom line in the coming quarters will be crucial for the company's financial health and investor sentiment.