Sunita Tools Limited , a prominent player in the manufacturing sector, has announced plans to raise ₹69.86 crore through a preferential issue of convertible warrants. The company has scheduled an Extraordinary General Meeting (EGM) for December 6, 2025, to seek shareholder approval for this significant move and other key resolutions.

Warrant Issue Details

The company plans to issue 8,73,282 warrants, each convertible into one equity share at a price of ₹800 per warrant. These warrants will be issued to non-promoter public category investors, marking a strategic step towards expanding the company's capital base and funding its growth initiatives.

Key Resolutions on the Agenda

1. Increase in Authorized Share Capital: Sunita Tools proposes to increase its authorized share capital from ₹7 crore to ₹8 crore by adding 10 lakh equity shares of ₹10 each.

2. Warrant Issue Approval: Shareholders will vote on the proposal to issue 8,73,282 warrants convertible into equity shares.

Utilization of Funds

The company has outlined a clear plan for the utilization of the funds raised:

Impact on Shareholding Pattern

The warrant issue, if fully converted, will lead to a significant change in the company's shareholding structure:

Key Allottees

Among the notable allottees are:

1. Anil Yadav (5,30,870 warrants)
2. Shruti Agrawal (90,000 warrants)
3. Rashi Fincorp Limited (65,000 warrants)
4. Avarjit Singh Birghi (50,000 warrants)
5. Sarabpreet Kaur (50,000 warrants)

EGM Details

The EGM is scheduled to be held through video conferencing on December 6, 2025, at 1:00 PM IST. Shareholders can participate in remote e-voting from December 2-5, 2025.

Implications and Outlook

This move by Sunita Tools Limited indicates a strategic push towards expansion and modernization, particularly in its artillery shell manufacturing capabilities. The significant allocation towards machinery purchase suggests the company's focus on enhancing its production capacity and technological capabilities.

The dilution of promoter holding, while increasing public shareholding, may lead to a more diverse ownership structure, potentially improving liquidity in the stock. However, shareholders should carefully consider the impact of this dilution on their ownership and voting rights.

As the company prepares for this capital raise, market observers will be keenly watching how effectively Sunita Tools utilizes these funds to drive growth and create value for its shareholders in the coming years.

Sunita Tools Limited , a prominent player in the tools manufacturing sector, has announced significant corporate actions aimed at bolstering its financial position and expanding its equity base. The company's Board of Directors has approved a series of strategic moves, including an increase in authorized share capital and the issuance of convertible warrants.

Authorized Share Capital Increase

The Board has given the green light to increase the company's authorized share capital from ₹7 crore to ₹8 crore. This expansion will see the number of equity shares rise from 70 lakh to 80 lakh, with each share maintaining a face value of ₹10. This move is subject to shareholder approval and will require an amendment to the Capital Clause of the company's Memorandum of Association.

Convertible Warrants Issue

In a significant fundraising initiative, Sunita Tools has approved the issuance of 8,73,282 convertible warrants at a price of ₹800 each. This preferential issue to 18 non-promoter investors is expected to raise approximately ₹69.86 crore. The key details of this warrant issue are as follows:

• Conversion Ratio: Each warrant is convertible into one equity share
• Conversion Period: Within 18 months from the date of allotment
• Payment Terms: 25% upfront, remaining 75% on conversion

Shareholding Impact

The warrant issuance, upon full conversion, will lead to a notable shift in the company's shareholding structure:

Unsecured Loan from Directors

In addition to these equity-related actions, the company has accepted an unsecured loan totaling ₹24.52 crore from three of its directors:

• Satish Pandey
• Sanjay Pandey
• Ragini Pandey

This loan, dated November 4, 2025, provides additional financial flexibility to the company.

Next Steps

The company will convene an Extra-ordinary General Meeting to seek shareholder approval for these proposals. The Board has already approved the draft notice for this meeting and appointed a scrutinizer to oversee the process.

These corporate actions reflect Sunita Tools Limited's proactive approach to strengthening its capital structure and financial position. The infusion of funds through the warrant issue and the expansion of the authorized share capital are likely to provide the company with increased financial flexibility for its future growth plans.