NewsCorporate ActionsVariman Global Enterprises Cancels 2.7 Crore Convertible Warrants, Forfeits Rs 13.49 CroreVariman Global Enterprises Cancels 2.7 Crore Convertible Warrants, Forfeits Rs 13.49 Crore
Variman Global Enterprise Limited has cancelled 2.69,80,000 convertible warrants due to warrant holders failing to exercise their conversion option within the given timeframe. The cancellation resulted in the forfeiture of Rs 13.49 Crore, which was the upfront amount paid at allotment. The warrants, originally issued at Rs 20.00 per warrant on a preferential basis to non-promoters, had a total value of Rs 53.96 Crore. No warrants were exercised during the 18-month conversion period, which ended on November 10, 2025. The company's capital structure remains unchanged following this cancellation.
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Variman Global Enterprise Limited has announced the cancellation of 2.69,80,000 convertible warrants following the failure of warrant holders to exercise their conversion option within the stipulated timeframe. This development comes as a significant corporate action, impacting the company's financial structure.
Key Details of the Warrant Cancellation
| Particulars | Details |
|---|---|
| Number of Warrants Cancelled | 2,69,80,000 |
| Original Issue Price | Rs 20.00 per warrant |
| Total Value of Cancelled Warrants | Rs 53.96 Crore |
| Upfront Amount Forfeited | Rs 13.49 Crore |
| Allotment Type | Preferential basis to non-promoters |
| Conversion Period End Date | November 10, 2025 |
Impact and Implications
The cancellation of these warrants has resulted in the forfeiture of the upfront amount paid at the time of allotment, totaling Rs 13.49 Crore. This forfeiture represents a significant financial impact for the company.
It's important to note that:
- No warrants were exercised during the 18-month conversion period.
- The cancellation does not result in any change to Variman Global Enterprise's capital structure.
Corporate Governance Aspect
The company's decision to cancel the warrants and forfeit the upfront amount aligns with standard corporate governance practices. It demonstrates adherence to the predetermined terms of the warrant issuance, maintaining transparency with investors and regulatory bodies.
This event underscores the importance for investors to closely monitor convertible instruments and their associated timelines. It also highlights the potential risks and opportunities that such financial instruments can present in the corporate landscape.
As the market digests this information, stakeholders may want to keep an eye on any potential impact on Variman Global Enterprise's future financial strategies and capital raising plans.
Historical Stock Returns for Variman Global Enterprise
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.40% | -7.35% | -21.09% | -36.00% | -48.56% | +345.10% |
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