Shree Marutinandan Tubes Limited has successfully completed the allotment of 22,00,230 fully convertible warrants at Rs 103.00 per warrant to eight individual investors from the non-promoter public category. This strategic move comes as part of the company's efforts to raise capital for growth initiatives and long-term value creation.

Warrant Allotment Details

The allotment was made following a board meeting held on August 14, where the company confirmed receipt of the initial 25% upfront payment from the warrant holders. These investors were given a second opportunity to participate in the preferential issue, following an earlier board resolution.

Key points of the warrant allotment include:

• Each warrant carries the right to subscribe to one equity share with a face value of Rs 10.00.
• The total number of warrants allotted is 22,00,230.
• The issue price is set at Rs 103.00 per warrant.
• The remaining 75% payment must be made within 18 months for conversion to equity shares.

Investor Breakdown

The warrants have been allotted to eight individual investors, all belonging to the non-promoter public category. The distribution of warrants among these investors is as follows:

Regulatory Compliance and Lock-in Period

The company has emphasized that the allotment has been carried out in strict compliance with Regulation 170 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as well as other relevant provisions of the Companies Act, 2013. The warrants will be subject to a lock-in period as specified by these regulations.

Impact on Share Capital

It's important to note that this warrant allotment will not result in an immediate change to the company's paid-up share capital. The capital structure will only be affected upon the exercise and subsequent conversion of these warrants into equity shares, which can occur within 18 months from the date of allotment.

Management's Perspective

The Board of Directors of Shree Marutinandan Tubes views this warrant allotment as beneficial for the company's growth initiatives and long-term value creation. By raising capital through this method, the company aims to strengthen its financial position and pursue its strategic objectives.

Investors and market participants will be keenly watching how Shree Marutinandan Tubes utilizes these funds and the potential impact on the company's future performance and market position.

Shree Marutinandan Tubes Limited (SMTL) has received a significant boost to its capital raising plans. The company has secured in-principle approval from the BSE Limited for a preferential issue of warrants convertible into equity shares, potentially raising up to Rs 49 crore.

Key Details of the Warrant Issue

Regulatory Approval and Compliance

The BSE granted the in-principle approval through a letter dated August 05, 2025. However, SMTL must note that this approval does not constitute final approval for the listing of the securities. The company is required to comply with various regulatory requirements, including:

1. Companies Act, 2013
2. Securities and Exchange Board of India (SEBI) regulations
3. Obtaining necessary statutory approvals

Additional Compliance Measures

The BSE has advised SMTL to implement several measures to ensure regulatory compliance:

1. Strengthen internal controls to monitor trades executed by proposed allottees in the company's scrip.
2. Obtain undertakings from allottees confirming they will not engage in intra-day trading or sell the company's shares until the allotment date.
3. Verify compliance with applicable provisions, including Regulation 167(6) of SEBI ICDR Regulations, 2018.

Post-Issue Formalities

SMTL must adhere to strict timelines for post-issue formalities:

• Submit a listing application within 20 days of allotment.
• Comply with post-issue formalities as specified by the BSE.
• Failure to meet the 20-day deadline may result in penalties as per SEBI circular dated June 21, 2023.

Implications for Investors

This warrant issue represents a significant opportunity for SMTL to raise capital, potentially strengthening its financial position. However, investors should note that the BSE reserves the right to withdraw the in-principle approval if any information submitted is found to be incomplete, incorrect, or misleading, or if it contravenes any relevant regulations.

As Shree Marutinandan Tubes moves forward with this capital raising initiative, market participants will be keen to observe how the company utilizes the funds and the impact on its growth strategy.