Sobhagya Mercantile Limited's Board of Directors has approved significant capital raising measures through the allotment of convertible warrants and equity shares to non-promoter investors. The board meeting held on March 11, 2026, concluded with approvals for warrant allotments totaling Rs. 20.23 crore and simultaneous equity share conversions, as communicated to BSE Limited under Regulation 30 of SEBI LODR Regulations, 2015.

Convertible Warrants Allotment Details

The board approved the allotment of 13,48,500 convertible warrants with a face value of Rs. 10.00 each at a premium of Rs. 664.49 per warrant to three non-promoter entities on a preferential basis.

Equity Shares Allotment and Conversion

Dovetail India Fund-Class 22 provided 100% consideration amount, including both the subscription price of Rs. 168.62 per warrant and exercise price of Rs. 505.87 per share, totaling Rs. 20,23,47,000. This enabled the simultaneous conversion of 3,00,000 warrants into equity shares at an issue price of Rs. 674.49 per share.

Capital Structure Impact

The equity share allotment has increased the company's paid-up equity capital from Rs. 8,40,00,000 consisting of 84,00,000 equity shares to Rs. 8,70,00,000 comprising 87,00,000 equity shares of Rs. 10.00 face value each. The allotment was conducted under the resolution passed in the Extraordinary General Meeting held on February 02, 2026, with in-principle approval received from BSE Limited dated February 24, 2026.

Regulatory Compliance and Timeline

The convertible warrants carry a conversion deadline of September 10, 2027, requiring conversion within 18 months from the allotment date. Outstanding warrants not exercised by holders will lapse on September 11, 2027. The board meeting concluded at 07:15 p.m. with all proposed resolutions receiving approval, and the outcome was communicated to BSE Limited in compliance with SEBI regulations.

Sobhagya mercantile Limited successfully conducted its Extra-Ordinary General Meeting on February 2, 2026, securing overwhelming shareholder approval for a special resolution regarding the issue of convertible warrants on preferential allotment basis. The meeting, held through video conferencing from 4:00 PM to 4:31 PM, demonstrated strong investor confidence with 99.9999% votes cast in favor of the proposal.

Meeting Participation and Voting Results

The EGM witnessed significant shareholder participation with 29 members attending through video conferencing, comprising 5 promoter group members and 24 public shareholders. The voting process was conducted entirely through remote e-voting, with no votes cast during the meeting itself.

Resolution Voting Breakdown

The special resolution for issuing convertible warrants on preferential allotment basis received exceptional support across all shareholder categories. The detailed voting results showcase the strong alignment between promoter and public shareholder interests.

E-Voting Process and Timeline

The company provided remote e-voting facility for four days, commencing from January 29, 2026, at 9:00 AM until February 1, 2026, at 5:00 PM. The e-voting platform was managed by National Securities Depositories Limited (NSDL), ensuring a transparent and secure voting process.

Scrutinizer Appointment and Report

PDTS and Associates, Company Secretaries, with Mr. Parag Dasarwar (FCS No. 9304) as the scrutinizer, was appointed by the Board on January 5, 2026, to oversee the voting process. The scrutinizer submitted the consolidated report on February 3, 2026, confirming the validity of all votes cast and the successful passage of the resolution.

Regulatory Compliance

The company has submitted the voting results and scrutinizer's report to BSE Limited in compliance with Regulations 30 and 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The resolution, as outlined in the notice dated January 5, 2026, has been passed with the requisite majority, enabling the company to proceed with the convertible warrants issue on preferential allotment basis.