Aarey Drugs & Pharmaceuticals has allotted 25.2 lakh equity shares, raising ₹12.06 crore by converting a part of its warrants. This increases the company's issued and paid-up capital to 3.34 crore shares.
Aarey Drugs & Pharmaceuticals Allots Equity Shares from Warrant Conversion
25.2 Lakh Equity Shares Allotted ₹12.06 crore Consideration Received Reader Takeaway: Planned capital infusion via warrant conversion; potential for further dilution from remaining warrants. ## What just happened Aarey Drugs & Pharmaceuticals Ltd has approved the allotment of 25.2 lakh equity shares. This allotment is a result of converting a portion of 50 lakh warrants that were originally issued on May 23, 2025. The company received ₹12.06 crore (1205.82 lakh) as consideration for this conversion. ## Why this matters This action increases the company's issued and paid-up capital. The total number of shares now stands at 3.34 crore, up from 2.84 crore before the allotment. This is a planned capital raise and strengthens the company's equity base with fresh funds. ## The backstory The preferential allotment strategy, including this warrant conversion, was approved by the company's members on January 02, 2025. The warrants were issued at an issue price of ₹63.80 per warrant. The company received 75% of this price, amounting to ₹47.85 per warrant, for the converted shares. ## What changes now The company's issued and paid-up capital has increased. The total number of equity shares has risen to 3.34 crore from 2.84 crore. There are still 24.8 lakh warrants outstanding. ## Risks to watch With 24.8 lakh warrants remaining, there is potential for further dilution of existing shareholders' equity if these warrants are exercised within their tenure, which is 18 months from May 23, 2025. ## Peer comparison (No reliable peer comparison data available in the filing) ## Context metrics (time-bound) * **Equity Shares Allotted**: 25.2 Lakh * **Consideration Received**: ₹12.06 crore * **Outstanding Warrants**: 24.8 Lakh * **Issue Price per Warrant**: ₹63.80 * **Warrants Issued (Original)**: 50 Lakh on May 23, 2025 * **Shares Before Allotment**: 2.84 Crore * **Shares After Allotment**: 3.34 Crore
