Sobhagya Mercantile has received board approval for a significant capital raising initiative through preferential allotment of convertible warrants. The board meeting held on January 5 approved the issuance of 26.50 lakh convertible warrants worth ₹1,787.06 crores to non-promoter investors.

Board Meeting Outcomes

The board of directors approved the preferential allotment subject to shareholder approval in an extraordinary general meeting and regulatory clearances. The warrants will be issued under Section 42 and 62 of the Companies Act, 2013, and SEBI (ICDR) Regulations, 2018.

Investor Details

The warrants will be allotted to five non-promoter investors through preferential allotment:

Conversion Terms

Each convertible warrant can be converted into one equity share within 18 months from the allotment date. Investors must pay 25% of the issue price at the time of warrant allotment, with the remaining amount payable upon conversion to equity shares.

Upcoming Milestones

The company has scheduled an extraordinary general meeting for February 2 at 4:00 PM through video conferencing to seek shareholder approval. The cut-off date for voting eligibility has been set for January 27. PDTS and Associates has been appointed as scrutinizer for the e-voting process.

Company Profile

Sobhagya Mercantile operates in the diversified sector and is classified as a small-cap company with a market capitalization of ₹773.22 crores. This preferential warrant issue represents a substantial capital raising exercise aimed at strengthening the company's financial foundation.

Sobhagya Mercantile Limited , through its consortium SML CALIBER SPV, has been awarded a mining contract in Maharashtra. The Assam Mineral Development Corporation (AMDCL) has issued a Letter of Intent to the company for operations at the Vadakhol Asoli Ni, Cr, Co & other Associated Mineral Block.

Contract Details

The Letter of Intent, dated November 13, 2025, outlines the scope of work for SML CALIBER SPV, which includes:

• Obtaining Composite License
• Prospecting and preparation of Geological Report
• Mining Plan approval and other statutory permissions
• Land acquisition
• Drilling, excavation, and transportation
• Supply of minerals as Mine Developer and Operator (MDO)
• Sale of minerals on a revenue-sharing basis with AMDCL

Financial Implications

The exact financial terms of the contract have not been disclosed. The company has stated that the awarded contract is for Composite Mining on an MDO and SALE revenue-sharing basis. The final consideration and size of the contract will be determined after the detailed exploration of the allotted mine is completed and a detailed agreement is signed.

Performance Security

As part of the agreement, SML CALIBER SPV has submitted a Performance Security of Rs. 1,50,00,000 (One Crore Fifty Lakh) through a Bank Guarantee valid until November 13, 2030.

Strategic Importance

This contract represents an expansion of Sobhagya Mercantile Limited's mining operations. The Vadakhol Asoli block contains nickel, chromium, and cobalt, which are in demand for industries such as electric vehicle battery production and stainless steel manufacturing.

Next Steps

The company is expected to enter into a detailed contract agreement with AMDCL. Following this, SML CALIBER SPV will commence the detailed exploration of the allotted mine, which will provide more clarity on the project's scope and potential value.

This development aligns with India's efforts to increase domestic mineral exploration and production. As the project progresses, it may contribute to local employment and economic development in the region.