Virinchi Limited , a company listed on both BSE and NSE, has reported a significant change in its promoter's shareholding structure. According to a disclosure made under SEBI regulations, promoter Viswanath Kompella has seen a partial release of pledged equity shares, impacting the company's ownership distribution.

Key Highlights

• 25,00,000 pledged equity shares were partially released by Badjate Stock Broking Pvt Ltd on August 13, 2025.
• The release was executed off-market through the depository mode.
• Following the transaction, the promoter's shareholding structure has been altered.

Impact on Shareholding

The partial release of pledged shares has resulted in the following changes to Viswanath Kompella's shareholding:

Company Capital Structure

Virinchi Limited's capital structure remains unchanged:

• Equity Share Capital: 10,26,46,896 shares of Rs. 10 each
• Total Voting Capital: Rs. 102,64,68,960
• Diluted Share Capital: 10,86,01,536 shares (including outstanding ESOPs)

The company has 59,54,640 outstanding ESOPs, which are included in the diluted share capital calculation.

Regulatory Compliance

This disclosure was made in compliance with Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The transaction demonstrates the company's commitment to transparency in reporting changes in promoter shareholding patterns.

The release of pledged shares often indicates a positive development, as it may suggest improved financial flexibility for the promoter. However, investors should consider this information alongside other financial and operational metrics when evaluating the company's overall performance and stability.

Virinchi Limited has taken a significant step to strengthen its capital structure by allotting 34,00,000 convertible equity warrants to 12 public investors at Rs 25.00 per warrant. This move, approved by the company's Stakeholders Relationship Committee, follows shareholder approval at an Extra-Ordinary General Meeting and clearances from both the BSE and NSE.

Warrant Details and Subscription

The warrants, with a face value of Rs 10.00 and a premium of Rs 15.00, were issued on a preferential basis. Investors have paid 25% of the issue price upfront, amounting to Rs 6.25 per warrant. This initial subscription has brought in Rs 2.12 crore to the company's coffers.

Conversion Terms

These warrants are convertible into an equal number of equity shares within an 18-month period, subject to the payment of the remaining 75% (Rs 18.75 per warrant) by the investors. If not exercised within this timeframe, the warrants will lapse, and the initial amount paid will be forfeited.

Investor Allocation

The allocation of warrants among the 12 public investors is as follows:

Impact on Shareholding Structure

Upon full conversion of these warrants, the company's shareholding structure is expected to shift slightly:

• Public shareholding would increase from 62.49% to 63.69%
• Promoter shareholding would decrease from 37.51% to 36.31%

This allotment is part of a larger approved issuance of 96,00,000 convertible equity warrants, indicating potential for further capital raising in the future.

The move by Virinchi Limited to issue these convertible equity warrants demonstrates the company's efforts to broaden its investor base and potentially strengthen its financial position. As the 18-month conversion period unfolds, market observers will be keen to see how many of these warrants are converted into equity shares, potentially providing additional capital for the company's growth initiatives.