Virinchi Limited has completed the allotment of 74,00,000 convertible equity warrants to Vivo Bio Tech Limited, a promoter group entity, marking a significant capital raising initiative. The allotment was approved by the company's Stakeholders Relationship Committee on January 9, 2026, following comprehensive regulatory approvals and shareholder consent.

Warrant Allotment Details

The convertible equity warrants were issued at a price of ₹28.00 per warrant, comprising a face value of ₹10.00 and a premium of ₹18.00. The company has received ₹5.18 crores as the initial 25% subscription amount from the allottee.

Regulatory Approvals and Framework

The warrant issuance was conducted under a comprehensive regulatory framework with multiple approvals. Shareholders had initially approved the issuance of up to 2,00,00,000 convertible equity warrants through a special resolution passed at an Extra-Ordinary General Meeting held on November 15, 2025. The company subsequently received in-principle approvals from both BSE (letter LOD/PREF/KS/FIP/1456/2025-26 dated December 31, 2025) and NSE (letter NSE/LIST/51564 dated December 31, 2025).

The allotment was executed on a preferential basis in accordance with SEBI (ICDR) Regulations, 2018, ensuring compliance with all regulatory requirements for such capital market transactions.

Conversion Terms and Timeline

The convertible warrants carry specific terms for conversion into equity shares. Each warrant is convertible into one fully paid-up equity share of face value ₹10.00 upon payment of the remaining 75% of the issue price, which amounts to ₹21.00 per warrant. The warrants must be exercised within 18 months from the allotment date, and warrant holders can exercise their conversion rights in one or more tranches during this period.

If warrants remain unexercised beyond the 18-month tenure, they will lapse automatically, and the amounts paid by warrant holders will be forfeited by the company.

Impact on Shareholding Pattern

The warrant allotment will significantly alter Virinchi Limited's shareholding structure upon full conversion. The analysis assumes complete conversion of the allotted warrants into equity shares.

The conversion will increase the promoter group's stake by 4.20 percentage points while correspondingly reducing public shareholding. Currently, there is no change in the company's paid-up share capital as the warrants represent a contingent allotment pending full payment and conversion.

Financial Implications

Upon full conversion, Virinchi Limited will receive a total consideration of ₹20.72 crores from the warrant exercise. The company has already collected ₹5.18 crores as the initial payment, with the remaining ₹15.54 crores expected upon warrant conversion. This capital infusion will strengthen the company's financial position and provide resources for business expansion and operational requirements.

The preferential allotment to a promoter group entity demonstrates confidence in the company's prospects while ensuring that the additional capital comes from committed long-term stakeholders aligned with the company's strategic objectives.

Virinchi Limited , a company listed on the Indian stock exchanges, has reported a significant change in its promoter's shareholding structure. On November 26, 2025, Viswanath Kompella, a promoter of the company, executed a release of pledge on a substantial number of equity shares.

Key Details of the Pledge Release

Impact on Shareholding Pattern

The release of pledge has resulted in a notable shift in the promoter's shareholding structure, although the total shareholding remains unchanged. Here's a breakdown of the changes:

Significance of the Transaction

This corporate action signifies a reduction in the promoter's encumbered shares, which could be viewed positively by the market. The decrease in pledged shares from 7.77% to 3.96% of the total share capital indicates a potential improvement in the promoter's financial position or a strategic decision to increase their freely tradeable shareholding.

It's important to note that while the pledge release affects the structure of the promoter's holdings, it does not change their overall ownership stake in the company, which remains constant at 15.93% of the total share capital.

Investors and market participants may want to monitor any potential impact this development might have on the company's stock price or market perception in the coming days.