Gretex Corporate Services Limited , a leading merchant banking firm, has issued an addendum to its valuation report following the identification of a computational error in the Volume Weighted Average Price (VWAP) calculation for its approved preferential issue of 1,00,000 equity warrants. The company disclosed the correction on January 3, 2026, maintaining compliance with regulatory requirements while confirming the original issue price remains valid.

Valuation Correction Details

The registered valuer identified an inadvertent computational error in the 90-day VWAP calculation used for determining the warrant issue price. The error was related to the methodology for calculating trading days, specifically whether to include non-trading days in the computation.

Regulatory Compliance Maintained

Despite the computational correction, the warrant issue price of ₹300 per equity warrant continues to comply with SEBI ICDR Regulations. The company obtained a certificate from a Practicing Company Secretary confirming regulatory compliance following the revision.

Warrant Issue Background

The preferential issue of 1,00,000 fully convertible equity warrants was unanimously approved by shareholders through postal ballot on December 13, 2025. The voting process concluded with 16,472,603 valid votes cast from 1,238 shareholders on record.

Strong Financial Performance Foundation

The warrant issue is supported by exceptional Q2 FY26 financial results, demonstrating the company's robust growth trajectory and justifying investor confidence in the equity raise.

The valuation report addendum and supporting documentation have been made available on the company's website for shareholder reference. This correction demonstrates Gretex Corporate Services' commitment to regulatory compliance and transparent disclosure practices while maintaining the integrity of its capital raising initiatives.

Gretex Corporate Services Limited has reported mixed financial results for the second quarter, showing profit growth despite a decline in revenue.

Q2 Financial Highlights

Key financial metrics for Q2 include:

The company's net profit increased to 115.00 million rupees from 99.00 million rupees in the same quarter last year, representing a 16.16% year-over-year growth. However, revenue declined to 796.00 million rupees from 937.00 million rupees in the previous year.

Notably, Gretex Corporate Services saw a significant improvement in its EBITDA, which surged to 318.00 million rupees from 167.00 million rupees. The EBITDA margin expanded substantially to 39.92% from 17.82% year-over-year, indicating improved operational efficiency.

Preferential Issue Approval

In addition to the financial results, the company's board has approved the issuance of 1,00,000 equity warrants on a preferential basis. The key details of this preferential issue are:

• Issue Price: Rs 300.00 per equity warrant
• Total Fundraising: Rs 3.00 crore
• Allottees: Non-promoter category investors

The company plans to issue these warrants to Mrs. Anzila Negi and Mr. Arun Negi, each receiving 50,000 warrants for a consideration of Rs 1.50 crore each.

Corporate Governance Updates

The board meeting also saw the approval of revised company policies, including:

• Whistle blower policy
• Audit committee policy
• Policy on Determination of materiality
• Code of conduct for merchant banker
• Preservation of documents and archival policy
• Familiarization Program policy of Independent Directors

These policy revisions underscore Gretex Corporate Services' commitment to maintaining robust corporate governance standards.

Conclusion

Despite the revenue decline, the growth in profitability and the decision to raise additional capital through a preferential issue suggest that Gretex Corporate Services is focusing on improving its financial position and operational efficiency. The company's efforts to strengthen its governance framework may be viewed positively by investors and stakeholders.

The preferential issue is subject to necessary approvals, including shareholder approval through a postal ballot process. The company will be seeking these approvals in due course, in compliance with SEBI regulations.