Whalesbook
Eco Recycling Limited's Board of Directors has approved a preferential allotment of warrants to its promoters, a move designed to raise ₹12.24 crore. The e-waste recycling firm is now seeking approval from its members and relevant regulatory bodies for this capital infusion. This action signals continued promoter confidence and financial backing for the company's operations and growth plans.
The board, which met on April 3, 2026, authorized the issuance of up to 300,000 warrants. These will be offered to promoters and the promoter group at an exercise price of ₹408 per warrant. The total aggregate amount raised from this issuance is ₹12.24 crore. Each warrant carries a premium of ₹398 over the equity share's face value of ₹10 and is exercisable within 18 months of its allotment.
This capital raise is crucial, particularly as Eco Recycling previously saw its attempt to raise funds through a Qualified Institutional Placement (QIP) expire on January 21, 2026. The preferential allotment reinforces the promoters' commitment to the company's business model and future prospects, providing necessary capital for operations and potential expansion initiatives.
For existing shareholders, the conversion of these warrants into equity shares could lead to a slight dilution of their stake, depending on the final terms and exercise by the promoters.
The company will now proceed to seek member approval through a postal ballot, with the notice expected to be dispatched shortly. The BSE will also be approached for approval to dispatch this notice.
The primary hurdle for this capital raise remains securing all necessary statutory and regulatory approvals. The conversion of warrants into equity shares is contingent upon these approvals and member consent.
Eco Recycling operates in India's e-waste and environmental services sector. Its peers include Namo eWaste Management Ltd., focused on specialized collection and recycling, and Gravita India Ltd., a larger integrated recycler active in lead and aluminium recycling. Both companies are also positioned to benefit from rising waste volumes and regulatory attention.
In terms of financial performance, Eco Recycling reported revenue of ₹46.3 crore and a profit of ₹23.38 crore for FY2025–2026. As of the fourth quarter of 2026, the company maintained a net profit margin of 34.7% on quarterly sales of ₹5.91 crore.
Investors will be watching the progress of the postal ballot process and the outcome of member voting. Securing the required regulatory and statutory approvals will also be key. Ultimately, the company's ability to effectively deploy these funds for growth will be a critical factor to monitor.