Shelter Pharma Limited has announced the conversion of 7,35,000 convertible warrants into equity shares, as approved by its Board of Directors. This move has resulted in an increase in the company's paid-up share capital and a fresh infusion of funds from promoters.

Key Details of the Warrant Conversion

Impact on Share Capital

The conversion of warrants has led to an increase in Shelter Pharma's paid-up share capital:

• Previous: Rs. 15,59,77,920 (1,55,97,792 equity shares)
• New: Rs. 16,33,27,920 (1,63,32,792 equity shares)

Promoter Participation

The warrants were converted by two promoters of the company:

1. Shakil Nisarahmed Sabugar: Converted 4,50,000 warrants
2. Mustaqim Nisarahmed Sabugar: Converted 2,85,000 warrants

Financial Implications

• The company received Rs. 31.69 per warrant as the balance payment, representing 75% of the issue price.
• The total amount raised through this conversion is Rs. 2,32,90,312.50.

Regulatory Compliance

Shelter Pharma has stated that the allotment is in accordance with SEBI (ICDR) Regulations 2018 and the Companies Act, 2013. The company will apply for listing and trading approval for the newly issued shares on the BSE Limited.

Conclusion

The conversion of these warrants into equity shares demonstrates promoter confidence in the company. Shelter Pharma will likely use the raised funds for its stated business objectives, although specific details on the use of proceeds were not provided in the disclosure.

Shelter Pharma Limited has announced the conversion of 7,35,000 convertible equity warrants into equity shares, as approved by its Board of Directors. This move has resulted in an increase in the company's paid-up share capital and has brought in additional funds from non-promoter investors.

Key Details of the Conversion

The conversion of warrants to equity shares was executed at a price of Rs. 31.75 per share, raising a total of Rs. 2.33 crore for the company. Here are the essential details of the transaction:

Impact on Share Capital

As a result of this conversion, Shelter Pharma's paid-up equity share capital has seen a notable increase:

Investor Details

The conversion was carried out by three non-promoter investors. The breakdown of their investments is as follows:

Regulatory Compliance and Next Steps

The company has stated that the newly allotted equity shares will rank pari-passu with the existing equity shares in all respects. Shelter Pharma plans to apply for listing and trading approval of these newly issued shares on the stock exchange in due course.

This warrant conversion is part of a larger allotment of 88,08,000 Convertible Equity Warrants that was approved earlier. The company had received in-principle approval from BSE Limited for this preferential allotment on July 22.

Shelter Pharma's management has confirmed that all necessary disclosures have been made in compliance with SEBI regulations, and the details of the transaction have been made available on the company's website.

Investors and market participants are advised to monitor further announcements from the company regarding the listing of these new shares and any potential impact on the stock's trading dynamics.