Valiant Communications Receives BSE In-Principle Approval for Rs. 46.08 Crore Warrant Issue

Valiant Communications Limited has received in-principle approval from the BSE for a preferential issue of warrants. The company plans to issue 6,00,000 warrants convertible into equity shares at Rs. 768.00 per share to non-promoters.

Key Details of the Warrant Issue

The warrant issue is valued at approximately Rs. 46.08 crore. Each warrant carries the right to be converted into one equity share with a face value of Rs. 10.00.

Allocation of Warrants

The warrants will be allocated to six investors as follows:

Investor Name	Number of Warrants
Shankar Sharma	50,000
Rajiv Khanna	25,000
Prajesh Maroa	25,000
Niveshaay Hedgehogs Fund	100,000
Niveshaay Sambhav Fund	100,000
Radiant Global Fund Class B Participating Shares	300,000

Additional Board Decisions

Previously, the Board of Directors had taken several important steps in connection with this preferential issue:

Constituted a Preferential Issue Committee to oversee and manage all necessary actions related to the issue.
Approved a draft postal ballot notice to seek shareholder approval for the preferential issue.

Regulatory Compliance

The issue price of Rs. 768.00 per warrant has been determined in accordance with the provisions of Chapter V of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, and applicable provisions of the Companies Act, 2013.

Next Steps

While Valiant Communications Limited has received in-principle approval from the BSE, the preferential issue remains subject to shareholders' approval, which will be sought through a postal ballot. The company will provide further details on the conversion of securities or the lapse of the tenure of the instrument as required.

This move by Valiant Communications Limited indicates an effort to raise capital. The company has not provided specific information on how the funds will be utilized.

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Valiant Communications Limited has announced plans to raise Rs 12.91 crore through a preferential share issue, as the company looks to bolster its working capital and fund business expansion. The decision comes amid recent success in securing significant purchase orders, highlighting the company's growth trajectory in the power utility sector.

Preferential Share Issue Details

The company has scheduled an Extraordinary General Meeting (EGM) on February 29, 2024, to seek shareholder approval for the issuance of 4,04,600 equity shares to non-promoter individuals on a preferential basis. The shares will be issued at a price of Rs 319 per share, which includes a premium of Rs 309 over the face value.

Key points of the preferential issue include:

Detail	Value
Total fundraising	Rs 12.91 crore
Number of shares	4,04,600
Issue price	Rs 319 per share
Largest allocation	2,00,000 shares to Shankar Sharma
Other allocations	12 individual investors to receive between 2,000 to 45,000 shares each
Post-issue impact	5.30% of the post-issue share capital
Completion timeline	Within 15 days of shareholder approval

The company has stated that the funds raised will be utilized for working capital requirements, business expenses, and general corporate purposes. Importantly, this preferential issue will not result in any change of control in the company.

Recent Business Developments

The preferential share issue announcement comes on the heels of significant business developments for Valiant Communications. According to a recent press release, the company has secured purchase orders worth Rs 84.70 crore from private sector System Integrators for the supply of its Communication, Protection, and Synchronization equipment. The end-users for these projects are Indian State Electricity Boards (SEBs).

Inder Mohan Sood, CEO of Valiant Communications, commented on the company's progress, stating, "The time-proven successful installations of our equipment are now being recognized by global power utilities, including those in developed Western countries." He highlighted the company's success in Switzerland, where their products have been operating satisfactorily in a nuclear power plant since 2017.

Market Position and Future Outlook

Valiant Communications has positioned itself as a key player in the power utility sector, with a track record of successful installations in over 5,500 power sub-stations worldwide. The company's product range includes communications, transmission, protection, synchronization, NAS data storage equipment, and cybersecurity products.

The recent orders and the planned capital raise through the preferential issue indicate that Valiant Communications is gearing up for accelerated growth. The company's management expressed optimism about near-term opportunities, suggesting a positive outlook for the future.

As an indigenous manufacturer, Valiant Communications is well-positioned to benefit from India's 'Make in India' and 'Atmanirbhar Bharat' initiatives, particularly in the public sector. This strategic advantage, combined with its growing international recognition, sets the stage for potential expansion and increased market share in the coming years.

Investors and stakeholders will be keenly watching the outcome of the upcoming EGM and the subsequent developments in Valiant Communications' business operations and financial performance.