NewsCorporate ActionsProspect Consumer Products to Expand Share Capital, Issue Convertible Warrants to PromotersProspect Consumer Products to Expand Share Capital, Issue Convertible Warrants to Promoters
Prospect Consumer Products Limited (PCL) has approved several corporate actions in a board meeting. The company plans to increase its authorized share capital from ₹6.50 crore to ₹7.50 crore by creating 10 lakh additional equity shares. PCL will also issue 7 lakh convertible warrants at ₹100 each to promoters, aiming to raise ₹7 crore. The warrants will be distributed among three promoters: Vimal Sureshbhai Mishra, Priyanka Vimal Mishra, and Prakash Mishra. Upon full conversion, promoter shareholding will change, with Prakash Mishra's stake increasing significantly. The Annual General Meeting is scheduled for September 26, where shareholders will vote on these proposals.
*this image is generated using AI for illustrative purposes only.
Prospect Consumer Products Limited (PCL) has announced significant corporate actions following a board meeting held on August 28, 2025. The company's Board of Directors has approved several key measures aimed at strengthening its capital structure and enhancing promoter stake.
Share Capital Increase
The board has given the green light to increase the company's authorized share capital from ₹6.50 crore to ₹7.50 crore. This expansion will be achieved by creating an additional 10 lakh equity shares, each with a face value of ₹10. The move is subject to shareholder approval at the upcoming Annual General Meeting (AGM).
Convertible Warrants Issue
In a strategic move to bolster promoter holding, PCL's board has approved the issuance of up to 7 lakh convertible warrants at ₹100 each to promoters through preferential allotment. This initiative is expected to raise ₹7 crore for the company. The warrants come with an 18-month exercise period from the date of allotment, with a 25% upfront payment required at allotment and the remaining 75% due upon conversion.
The warrants will be distributed among three promoters as follows:
- Vimal Sureshbhai Mishra: 2.5 lakh warrants
- Priyanka Vimal Mishra: 2 lakh warrants
- Prakash Mishra: 2.5 lakh warrants
Impact on Shareholding
Upon full conversion of the proposed warrants, the promoter shareholding is expected to change as follows:
| Promoter Name | Pre-Issue Holding | Warrants to be Allotted | Post-Issue Holding |
|---|---|---|---|
| Vimal Sureshbhai Mishra | 23.95% | 2,50,000 | 23.48% |
| Priyanka Vimal Mishra | 23.39% | 2,00,000 | 22.31% |
| Prakash Mishra | 3.32% | 2,50,000 | 6.35% |
It's worth noting that these figures account for pending listings of recently converted warrants and assume full conversion of all outstanding warrants.
Annual General Meeting
The company has scheduled its Annual General Meeting for September 26, 2025, where shareholders will vote on these proposals. The Register of Members and Share Transfer Books will remain closed from September 20 to September 26, 2025, for AGM purposes.
Other Board Approvals
The board has also approved the Directors' Report for the financial year ended March 31, 2025, and the re-appointment of Mrs. Riddhi Bharatkumar Vasita as a Non-Executive Director, subject to shareholder approval at the AGM.
These corporate actions reflect PCL's efforts to optimize its capital structure and strengthen promoter commitment, potentially positioning the company for future growth initiatives.
Historical Stock Returns for Prospect Consumer Products
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +6.87% | +14.18% | +60.31% | +31.25% | -27.54% | +61.54% |
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