VR Woodart Allots 1.4 Crore Equity Shares and 44.8 Lakh Warrants, Reports Increased Loss

V R Woodart Limited, a company facing financial challenges, has made significant moves to strengthen its capital base while reporting an increased loss for the half-year ended September 30, 2025.

Share Allotment Details

The Board of Directors of VR Woodart Limited has approved the allotment of 1,39,90,000 equity shares at Rs 22.00 per share and 44,80,000 convertible warrants at Rs 22.00 per warrant on a preferential basis. This decision comes in accordance with the special resolution passed by the company's shareholders at an Extraordinary General Meeting held on April 04, 2025.

The allotment is structured as follows:

Allottee	Equity Shares	Convertible Warrants
Minal Gaurav Patil	62,10,000	20,40,000
Mounica Maddukuri	62,10,000	20,40,000
Synergy Techno Eco Consultancy Pvt. Ltd	10,00,000	-
Others	5,70,000	4,00,000
Total	1,39,90,000	44,80,000

It's noteworthy that Minal Gaurav Patil and Mounica Maddukuri, currently in the Non-Promoter Category, are set to be classified as Promoters following the completion of formalities under SEBI regulations.

Financial Performance

The company's financial results for the half-year ended September 30, 2025, paint a challenging picture:

Net Loss: The company reported a net loss of Rs 64.59 lakh, significantly higher than the Rs 3.85 lakh loss in the same period of the previous year.
Revenue: VR Woodart Limited continues to operate with no revenue from operations.
Other Equity: The company's other equity stands at a negative Rs 1,766.25 lakh, indicating a complete erosion of net worth.

Balance Sheet Highlights

As of September 30, 2025:

Total Assets: Rs 2.50 lakh
Total Liabilities: Rs 279.57 lakh
Equity Share Capital: Rs 1,489.18 lakh
Other Equity: (Rs 1,766.25 lakh)

Auditor's Observations

The company's auditors, Thakur, Vaidyanath Aiyar & Co., have emphasized that while the company's net worth has been completely eroded and operations are limited, the accounts are prepared on a going concern basis.

Management's Perspective

The management states that the company has availed unsecured loans for continued operations and to explore various opportunities. The proceeds from the fresh issue are intended to be utilized for paying outstanding liabilities, meeting working capital requirements, and running business operations.

Looking Ahead

While VR Woodart Limited faces significant financial challenges, the recent share allotment may provide the company with much-needed capital. However, the substantial increase in net loss and the absence of operational revenue underscore the uphill battle the company faces in turning its fortunes around.

Investors and stakeholders will be keenly watching how the company utilizes the fresh capital and whether it can develop a sustainable business model in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.00%	-2.55%	+36.52%	+39.85%	+1,240.21%	+1,028.60%

V R Woodart Limited, a company listed on the Bombay Stock Exchange (BSE: 523888), has announced a significant move into the stainless steel trading sector through strategic acquisitions. The company's board of directors has approved the purchase of 100% stakes in two companies: Nidimo Mont Private Limited and Parent Mont International Private Limited.

Acquisition Details

Aspect	Details
Total Acquisition Cost	Approximately INR 3.20 crores
Nidimo Mont Pvt Ltd	INR 3.10 crores for 31 lakh equity shares
Parent Mont International Pvt Ltd	INR 0.10 lakhs for 1 lakh equity shares
Share Price	INR 10.00 per share (face value)
Sellers	Mrs. Minal Patil and Ms. Mounika Maddukuri
Completion Timeline	By end of Q3 FY 2025-26
Funding Method	Cash consideration

Strategic Rationale

The acquisition aims to strengthen V R Woodart's position in the stainless steel market. Both target companies are engaged in trading, import, and export of stainless steel products and alloys. This move is expected to:

Increase V R Woodart's customer base
Introduce new products for sales
Ensure continuous supply of stainless steel at market-driven rates
Gain a competitive advantage in the stainless steel and alloy market

Business Transfer Agreements

Both acquired entities have entered into business transfer agreements with established partnership firms:

Nidimo Mont Pvt Ltd with Nidimo International (FY 2025 turnover: INR 531.22 crores)
Parent Mont International Pvt Ltd with Parent Mont (FY 2025 turnover: INR 1965.33 crores)

Related Party Transaction

The acquisition is classified as a related party transaction. Mrs. Minal Patil and Ms. Maddukuri Mounica, the current owners of the acquired companies, will be reclassified as part of V R Woodart's promoter group. The company has stated that the transaction is being conducted at arm's length, with the share price based on a valuation report from a registered valuer.

Management Changes

Concurrent with this acquisition, V R Woodart has announced significant changes in its management structure:

Director	Position	Action
Mr. Anwar Shaikh	Whole-Time Director	Resigned
Mrs. Divya Pai	Non-Executive Director	Resigned
Mr. Kartik Jethwa	Independent Director	Resigned
Mr. Manan Shah	Independent Director	Resigned
Mr. Vinit Rathod	Independent Director	Resigned
Mrs. Minal Patil	Additional (Whole Time) Director & Chairperson	Appointed

These management changes, effective immediately from October 16, 2025, mark a significant shift in the company's leadership coinciding with its strategic expansion into the stainless steel sector.

The acquisitions and management restructuring signal a transformative phase for V R Woodart as it diversifies its business interests and positions itself for growth in the stainless steel market.