Sarveshwar foods Limited has announced the forfeiture of ₹23.77 crore in upfront payments following the lapse of 9.81 crore warrants on January 25, 2026. The company informed stock exchanges that warrant holders failed to exercise their conversion option within the prescribed 18-month period, resulting in automatic lapse of the securities.

Warrant Allotment and Conversion Timeline

The company had originally allotted 10.20 crore warrants on July 25, 2024, on a preferential basis. These warrants entitled holders to apply for and receive an equivalent number of equity shares within 18 months from the allotment date. The conversion window closed on January 24, 2026, after which all unexercised warrants automatically lapsed.

Conversion Performance and Forfeiture Details

Out of the total 10.20 crore warrants allotted, only 39.50 lakh warrants were exercised within the conversion period. The remaining 9.81 crore warrants lapsed due to non-exercise by their respective holders. As per SEBI regulations, the company has forfeited the upfront amount of ₹23.77 crore, which represented 25% of the total issue size collected at the time of warrant allotment.

Major Warrant Holders Affected

The lapse affected several significant investors, with institutional funds bearing the largest impact. Eminence Global Fund PCC had the highest exposure with 4.75 crore warrants lapsed, resulting in forfeiture of ₹11.52 crore. Radiant Global Fund followed with 2.55 crore lapsed warrants and ₹6.18 crore forfeited.

Regulatory Compliance and Capital Structure Impact

Sarveshwar Foods Limited has informed both NSE and BSE about the warrant lapse in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company clarified that the lapse of warrants does not result in any change to its capital structure. The forfeiture follows SEBI (Issue of Capital and Disclosure Requirement) Regulations, 2018, which mandates retention of upfront payments when warrants remain unexercised beyond the conversion period.

Sarveshwar Foods Limited has completed the allotment of 2,00,000 equity shares following the conversion of warrants on January 21, 2026. The Board of Directors approved the allotment through a circular resolution, marking a significant step in the company's capital expansion strategy.

Warrant Conversion Details

The equity shares were allotted at an issue price of ₹9.70 per share, with each share having a face value of ₹1.00. The conversion process involved the receipt of ₹14.55 lakh from the warrant holder, representing the balance 75% payment required for conversion.

Allottee Information

The entire allotment was made to Mr. Rajat Mengi under the public category. Prior to this allotment, Mr. Mengi held no equity shares in the company. Post-conversion, he now holds 2,00,000 equity shares, representing a 0.016% stake in Sarveshwar Foods Limited.

Impact on Share Capital

Following this allotment, Sarveshwar Foods Limited's paid-up equity share capital has increased to ₹122.89 crore, comprising 122,89,26,469 equity shares of ₹1.00 face value each. The newly allotted shares rank pari-passu with existing equity shares in all respects from the date of allotment.

Original Warrant Issue Background

The warrants were originally allotted on July 25, 2024, totaling 10,20,00,000 warrants at an issue price of ₹9.70 each. These warrants were convertible into equity shares within 18 months from the allotment date. The warrant holders had initially paid 25% of the issue price (₹2.43 per warrant) at the time of subscription, with the remaining 75% payable upon conversion.

The conversion process allows warrant holders to exercise their rights in one or more tranches during the 18-month period. Any unexercised warrants will lapse after this period, with the amounts paid by warrant holders being forfeited by the company. The current conversion represents a partial exercise of the total warrants issued, with the company maintaining its promoter and non-promoter shareholding at 40.96% and 59.04% respectively.