The Securities Appellate Tribunal (SAT) in Mumbai has dismissed an appeal by Vespera Fund Limited against a Securities and Exchange Board of India (SEBI) order concerning Rushil Decor Limited 's convertible warrants. This decision upholds SEBI's stance on the matter and extends the status quo on a significant number of warrants.

Key Points of the SAT Decision

• Appeal Dismissed: SAT rejected Vespera Fund's appeal against SEBI's March 2025 order.
• Warrant Conversion: The appeal sought relaxation to pay the remaining 75% consideration for convertible warrants and exercise conversion into Rushil Decor's equity shares.
• Regulatory Context: The application was made under Regulation 43B of the SEBI (Foreign Portfolio Investors) Regulations, 2019.
• Status Quo Extended: SAT extended the status quo on 1,000,000 warrants for six weeks from October 15, 2025.

Implications for Rushil Decor Limited

Rushil Decor Limited, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, has disclosed the following actions:

1. The company will maintain the current position on the 1,000,000 warrants during the extended status quo period.
2. Appropriate action will be taken after the expiry of the six-week period or upon receiving further directions.

Background of the Case

The case stems from Vespera Fund Limited's attempt to convert warrants into equity shares of Rushil Decor Limited. The fund sought relaxation in payment terms for the remaining consideration of the warrants, which SEBI had initially denied in March 2025.

What's Next

The six-week extension of the status quo provides a temporary resolution, but the final outcome remains to be seen. Stakeholders and market observers will be watching closely for any further developments in this case, which could have implications for foreign portfolio investments and corporate actions in the Indian market.

Rushil Decor Limited has assured that it will act in accordance with applicable laws and the terms of the warrant issue once the status quo period expires or if additional directions are received.

Rushil Decor , a leading player in the Indian decorative laminate and MDF panel board industry, has announced significant progress in its expansion plans. The company has commenced trial production at Phase 2 of its state-of-the-art Jumbo Laminate Plant, marking a crucial step towards achieving its ambitious revenue target.

Expansion Highlights

• Trial Production: Rushil Decor has initiated trial run production for Phase 2 of its Jumbo Size Laminates manufacturing facility.
• Location: The new plant is situated at Village Itla, Near Kalyanpura Patia, Gandhinagar-Mansa Road, Taluka Mansa, District Gandhinagar, Gujarat.
• Capacity Increase: Phase 2 adds approximately 1.60 million sheets per annum to the production capacity (based on 1 mm thickness).
• Total Capacity: With the completion of Phase 2, the combined production capacity from both phases reaches 2.80 million sheets per annum.

Financial Projections

Rushil Decor has set ambitious targets following this expansion:

Strategic Focus

Mr. Rushil K. Thakkar, Managing Director of Rushil Decor Limited, emphasized the company's strategic direction: "The expansion through Phase 2 not only strengthens our product portfolio but also enhances capacity, scale, and global competitiveness. Our strategic focus remains on innovation, capacity augmentation, and expanding our footprint in both domestic and international markets."

Market Outlook

• The company has secured export orders for a significant portion of its total Jumbo laminates capacity.
• Rushil Decor is poised to ramp up full-scale production in the upcoming quarters.
• The expansion aims to address the growing global demand for high-quality, value-added laminates.
• The company is reinforcing its position as a premium supplier in key international markets, including the USA, Europe, and other developed Western markets.

Project Timeline

The Phase 2 expansion aligns with Rushil Decor's commitment to complete the project by Q3 FY26, as previously outlined. This brownfield development is expected to positively contribute to both top-line and bottom-line performance during FY 2025-26.

Rushil Decor's strategic expansion and focus on high-growth international markets position it well to capitalize on the increasing demand for quality wood panel products. As the company progresses with its growth plans, investors and industry observers will be keenly watching its performance in the coming quarters.