Rama Petrochemicals Limited has completed the conversion of 15,96,450 warrants into equity shares on January 23, 2026, through a circular resolution passed by its Board of Directors. The conversion represents the second tranche of warrant conversions by the company, raising ₹119.73 crores from promoter group entities.

Warrant Conversion Details

The conversion was executed at an exercise price of ₹7.50 per warrant, which represents 75% of the original warrant issue price of ₹10.00 per warrant. Each converted warrant resulted in the allotment of one equity share with a face value of ₹10.00.

Allottee Details

The warrant conversion was completed by two promoter group entities, both exercising their conversion rights under the SEBI ICDR Regulations, 2018.

Capital Structure Impact

The warrant conversion has resulted in a significant increase in the company's paid-up equity share capital. The newly allotted equity shares rank pari-passu with existing equity shares in all respects, including dividend rights.

Regulatory Compliance

The allotment was conducted in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company had initially allotted these warrants on March 21, 2025, with warrant holders paying 25% of the issue price (₹2.50 per warrant) at the time of allotment. The current conversion involved payment of the remaining 75% of the issue price.

The conversion follows the company's previous intimation letters dated March 21, 2025, and March 26, 2025, regarding the warrant allotment process. All regulatory requirements under the SEBI Master Circular dated November 11, 2024, have been fulfilled as part of this preferential allotment process.

Shares of Mangalore Refinery and Petrochemicals Ltd (MRPL) rose as much as 7%, reaching an intraday high of ₹149.40 during Wednesday's trading session. The sharp rebound followed a three-day losing streak that had pressured the stock in recent sessions.

Strategic Shift in Crude Oil Sourcing

The recent decline was triggered by comments from company executives stating that MRPL is not importing Russian crude due to Western sanctions and is exploring purchases of Venezuelan oil. According to Devendra Kumar, MRPL's head of finance, the company is considering Venezuelan crude purchases as it halts Russian oil imports to remain compliant with international sanctions.

"We are in strict compliance with all sanctions in place, and currently no Russian crude is being imported," Kumar stated during an analyst call. This strategic shift represents the company's proactive approach to diversifying its crude sourcing amid geopolitical challenges.

Operational Overview

MRPL operates a significant refining capacity and maintains a strong export presence in the fuel market:

Strong Q3 FY26 Financial Performance

Prior to the recent three-day dip, the stock had surged nearly 9% following strong Q3 FY26 results. The company delivered impressive financial performance with significant improvements across key metrics:

The substantial improvement in margins boosted investor confidence and contributed to the stock's recent positive momentum.

Valuation and Technical Analysis

MRPL's shares are currently trading at relatively attractive valuations with a price-to-earnings ratio of 11.22 and a price-to-book ratio of 1.88. On the technical front, the 14-day Relative Strength Index stands at 41.4, suggesting that the stock is neither overbought nor oversold.

In terms of moving averages, MRPL is trading below four of its eight short-term simple moving averages, indicating some near-term weakness. However, it continues to trade above its 150-day and 200-day long-term simple moving averages, signaling a healthy long-term trend.

Market Outlook

MRPL's stock rebound is supported by strong quarterly earnings and its proactive efforts to diversify crude sourcing. These factors appear to have restored investor confidence following earlier concerns over geopolitical supply disruptions. The company's commitment to sanctions compliance while exploring alternative crude sources demonstrates strategic flexibility in navigating complex international trade environments.