NewsCorporate ActionsSteelman Telecom Forfeits Rs 4.28 Crore as Warrant Holders Fail to Exercise Conversion OptionSteelman Telecom Forfeits Rs 4.28 Crore as Warrant Holders Fail to Exercise Conversion Option
Steelman Telecom announced that warrant holders failed to exercise their conversion option within the 18-month deadline, resulting in the forfeiture of the Rs 4.28 crore upfront payment. The company had issued 10 lakh fully convertible warrants at Rs 171 each to eight allottees on January 25, 2024. Warrant holders were required to pay 25% upfront and had the option to convert to equity shares by paying the remaining 75% within 18 months. As no conversions occurred by July 24, 2025, the upfront amount was forfeited. This development impacts the company's anticipated equity infusion of Rs 12.83 crore.
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Steelman Telecom announced that warrant holders have failed to exercise their conversion option within the stipulated 18-month deadline, resulting in the forfeiture of the upfront payment totaling Rs 4.28 crore.
Warrant Details
The company had issued 10 lakh fully convertible warrants at Rs 171.00 each to eight allottees, including promoters and non-promoters, on January 25, 2024. The warrant holders were required to pay 25% upfront (Rs 42.75 per warrant) and had the option to convert these warrants into equity shares by paying the remaining 75% (Rs 128.25 per warrant) within 18 months.
Forfeiture of Upfront Payment
As per the company's intimation to the Bombay Stock Exchange under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, none of the warrant holders exercised their conversion option by the deadline of July 24, 2025. Consequently, the total upfront amount of Rs 4.28 crore stands forfeited in accordance with Regulation 169(3) of Chapter V of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.
Allottee Details
The warrant holders who failed to exercise their conversion option include:
| Allottee Name | Number of Warrants |
|---|---|
| Mahendra Bindal | 2,00,000 |
| Mayank Bindal | 2,00,000 |
| Laxmi Devi Jhunjhunwala | 2,00,000 |
| Bhagyoday Oil Industries | 1,00,000 |
| Pooja Vivek Jalan | 1,00,000 |
| Navyarth Capital Advisors Private Limited | 1,00,000 |
| Mohit Baser | 50,000 |
| Anshul Baser | 50,000 |
Impact on Company Finances
The forfeiture of the upfront payment provides Steelman Telecom with an unexpected influx of Rs 4.28 crore. However, the company will not receive the additional Rs 12.83 crore that would have been raised if all warrants were converted to equity shares.
This development may affect the company's capital structure and future expansion plans, as the anticipated equity infusion from the warrant conversion will not materialize.
Steelman Telecom, formerly known as Steelman Telecom Private Limited, is headquartered in Kolkata and operates in the telecommunications sector.
Historical Stock Returns for Steelman Telecom
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | -7.42% | -2.87% | -22.01% | -21.00% | -29.90% |
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