Garg Furnace Completes Preferential Allotment of 13.98 Lakh Warrants

13,98,000 warrants allotted at Rs 126.50 per warrant; total upfront payment received is Rs 4.42 crore.

Reader Takeaway: The preferential issue brings immediate liquidity to the company but points toward future equity dilution upon warrant conversion.

What just happened

Garg Furnace Ltd has successfully completed the allotment of 13,98,000 convertible warrants on a preferential basis. The process follows board approval granted on July 31, 2026, and shareholder consent obtained during the AGM held on August 29, 2026. The company also secured in-principle approval from the BSE on September 29, 2026. The total consideration for this issue is Rs 17.68 crore, with the company successfully collecting the mandatory 25% upfront payment of Rs 4.42 crore.

Transaction Details

The warrants have been issued at a price of Rs 126.50 per unit. Each warrant carries the right to be converted into one fully paid-up equity share with a face value of Rs 10. To finalize the conversion, the allottees are required to pay the remaining 75% balance, amounting to Rs 94.875 per warrant.

Allottee Breakdown

The allotment includes key promoter figures and several non-promoter entities. Promoters Devinder Garg, Vaneera Garg, Toshak Garg, and Daksh Garg were each allotted 3,00,000 warrants. Non-promoter participants include Securocrop Securities India Pvt Ltd with 1,02,000 warrants, along with smaller allocations to Sangeeta Pareekh, Saket Agarwal, Vanshika Sharma, and Manit Sawhney.

What to track next

Shareholders should monitor future regulatory filings regarding the exercise of conversion options. The conversion of these warrants will result in the infusion of the remaining 75% of the total issue price, which will simultaneously increase the company’s paid-up equity capital.