Subam Papers Limited has successfully completed a significant preferential allotment, raising ₹104.38 crores through the issuance of warrants and equity shares. The Board of Directors approved the allotment on February 04, 2026, marking a major capital raising initiative for the Tamil Nadu-based packaging company.

Allotment Details and Structure

The company allotted a total of 68,67,200 securities comprising 26,32,800 warrants and 42,34,400 equity shares at ₹152.00 per security, including a premium of ₹142.00. The face value of each security stands at ₹10.00.

Warrant Allotment to Promoters

The warrant issuance was exclusively allocated to promoters and promoter group entities. Thirupathi Balakumar, the Managing Director, received the largest allocation of 13,16,000 warrants for ₹20,00,32,000.00. BMM Paper Board Private Limited, a promoter group entity, was allotted 9,87,200 warrants worth ₹15,00,54,400.00, while promoter Alagarsamy Sudha received 3,29,600 warrants valued at ₹5,00,99,200.00.

Equity Share Distribution

The equity shares were allocated to 47 public investors, with Madhuri Madhusudan Kela receiving the largest allocation of 19,28,000 shares for ₹29,30,56,000.00. Other significant allottees include Invicta Continuum Fund I with 4,99,200 shares and Invicta Finserv Private Limited with 2,99,200 shares.

Warrant Conversion Terms

The warrants carry specific conversion terms with an 18-month exercise period from the date of allotment. Each warrant is convertible into one equity share of face value ₹10.00. For the warrants, allottees paid ₹38.00 per warrant at the time of allotment, with the remaining ₹114.00 payable upon conversion to equity shares. The warrants can be converted in one or more tranches during the tenure period.

Regulatory Compliance

The allotment was conducted in accordance with Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and the Companies Act, 2013. The securities are subject to lock-in restrictions as prescribed under SEBI regulations. The company confirmed receipt of all application money and forms from the 50 allottees as specified in the Notice of Extra-Ordinary General Meeting dated November 14, 2025, and its corrigendum dated December 05, 2025.

Subam papers Limited has received in-principle approval from BSE Limited for a significant preferential issue comprising warrants and equity shares. The approval, communicated through BSE letter LOD/PREF/TT/FIP/1579/2025-26 dated January 23, 2026, marks an important step in the company's capital raising initiative.

Preferential Issue Details

The BSE approval covers the issue and allotment of securities on a preferential basis under Regulation 28(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The preferential issue structure includes specific allocations for different investor categories.

Regulatory Compliance Requirements

BSE has outlined comprehensive compliance requirements that Subam Papers must fulfill before proceeding with the allotment. The company must ensure strict adherence to multiple regulatory frameworks including:

• Companies Act, 2013
• Securities Contracts (Regulation) Act, 1956
• Securities and Exchange Board of India Act, 1992
• Depositories Act, 1996
• Chapter V of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018
• SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Trading Restrictions and Internal Controls

The exchange has mandated specific measures to prevent non-compliance with trading regulations. Key requirements include:

• Obtaining undertakings from allottees confirming no intra-day trading in company scrip
• Ensuring no sales in company scrip until allotment date
• Strengthening internal controls to monitor trades by proposed allottees
• Verification of compliance with Regulation 167(6) of SEBI ICDR regulations, 2018

Post-Allotment Obligations

Upon completion of the allotment, Subam Papers must fulfill several post-issue formalities within specified timeframes. The company is required to make a listing application within twenty days from the date of allotment, as per Schedule XIX – Para (2) of ICDR Regulations and SEBI circular SEBI/HO/CFD/PoD-2/P/CIR/2023/00094 dated June 21, 2023.

Management Communication

The company formally communicated the approval to BSE Limited on January 27, 2026, through a letter signed by T. Balakumar, Managing Director (DIN: 00440500). The communication was made pursuant to Regulation 30 of the SEBI Listing Regulations, emphasizing the company's commitment to transparent disclosure practices.

BSE has reserved the right to withdraw the in-principle approval if any information submitted is found to be incomplete, incorrect, misleading, or in contravention of applicable regulations. The approval specifically clarifies that it should not be construed as approval for listing of the securities, requiring separate compliance for listing requirements.