Rose Merc Limited has announced a significant move to strengthen its capital base through a preferential issue of equity shares and warrants to non-promoters. The company's Board of Directors has approved the issuance of 24,222 equity shares and 40,000 equity warrants, subject to shareholder approval at the upcoming 41st Annual General Meeting.

Equity Share Issuance

The company plans to issue 24,222 equity shares at a price of Rs. 90.00 per share, which includes a premium of Rs. 80.00 over the face value of Rs. 10.00. The shares will be allocated to four non-promoter investors:

Equity Warrant Issuance

In addition to the equity shares, Rose Merc Limited will also issue 40,000 equity warrants, convertible into an equal number of equity shares. These warrants will be priced at Rs. 90.00 per warrant, maintaining consistency with the equity share pricing. The warrants will be allocated to two non-promoter investors:

Terms of Warrant Conversion

The equity warrants come with specific terms for conversion:

1. Investors will have 18 months from the date of allotment to convert the warrants into equity shares.
2. At the time of allotment, warrant holders must pay 25% of the warrant price upfront.
3. The remaining 75% is due at the time of converting the warrants into equity shares.
4. If not exercised within the 18-month period, the warrants will lapse, and the initial 25% payment will be forfeited by the company.

This strategic move by Rose Merc Limited aims to bolster its financial position and potentially fund future growth initiatives. The preferential issue to non-promoters may also help in broadening the company's investor base.

The Board meeting, which commenced at 4:00 p.m. and concluded at 4:38 p.m. on July 30, 2025, also approved the notice for the 41st Annual General Meeting where shareholders will be asked to approve this preferential issue.

Investors and market participants will be keenly watching how this capital infusion impacts Rose Merc Limited's future plans and financial performance. As always, the completion of this preferential issue remains subject to necessary regulatory approvals and market conditions.

Rose Merc Limited has announced its unaudited financial results for the first quarter, showcasing a remarkable turnaround in its consolidated performance while experiencing a slight dip in standalone operations.

Consolidated Performance Highlights

Rose Merc Limited reported a substantial increase in its consolidated total income for Q1. The company's total income surged to Rs 2,215.01 crore, compared to Rs 768.10 crore in the previous quarter, marking an impressive growth of about 188%.

The consolidated net profit for the quarter stood at Rs 185.45 crore, a significant improvement from the loss of Rs 68.68 crore reported in the previous quarter. This turnaround in profitability showcases the company's ability to effectively manage its operations across its diverse business segments.

Standalone Financial Results

On a standalone basis, Rose Merc Limited's performance showed a slight decline:

The standalone revenue from operations decreased by 15.16% quarter-on-quarter, while the net profit saw a significant reduction of 96.10%.

Audit Committee Reconstitution

In a move to strengthen its corporate governance, Rose Merc Limited has reconstituted its Audit Committee. The new committee comprises five members:

1. Mr. Shekhar Mennon (Chairperson, Independent Director)
2. Mr. Nooruddin Shaikh (Executive Whole Time Director)
3. Mr. Uday Damodar Tardalkar (Independent Director)
4. Mr. Abhijeet Anil Tipnis (Non-Executive Independent Director)
5. Dr. Saroj Shrinivas Datar (Women Independent Director)

This diverse committee structure aims to enhance the company's financial oversight and compliance processes.

Subsidiary Performance

The consolidated results include the performance of nine subsidiary entities across various business segments. The significant improvement in consolidated financials suggests strong performances from these subsidiaries, offsetting the decline in standalone operations.

Looking Ahead

While the standalone performance shows some pressure, the robust consolidated results indicate that Rose Merc Limited's diversified business model is yielding positive outcomes. The company's ability to turn a profit at the consolidated level, despite challenges in its standalone operations, demonstrates the strength of its subsidiary businesses.

Investors and stakeholders will be keen to observe how Rose Merc Limited leverages this momentum in the coming quarters, particularly in improving its standalone performance while maintaining the strong growth trajectory of its subsidiaries.

As always, investors are advised to conduct their own research and consider market conditions before making investment decisions.