Likhitha Infrastructure Ltd has completed the preferential allotment of 25 lakh convertible warrants at Rs 240 each, raising Rs 15 crore as an upfront 25% payment. The warrants, issued to 21 investors including promoters, are convertible into equity shares within 18 months.
Likhitha Infrastructure Allots 25 Lakh Warrants Raising Rs 15 Crore
Total value of Rs 60 crore expected upon conversion; Rs 15 crore received upfront.
Reader Takeaway: Infusion boosts company liquidity, but shareholders should note future equity dilution potential upon warrant conversion.
What just happened
Likhitha Infrastructure has formally allotted 25,00,000 convertible warrants to 21 investors via a preferential issue. The issue price is set at Rs 240 per warrant (Rs 5 face value + Rs 235 premium). The company has collected Rs 15 crore, representing the mandatory 25% upfront subscription amount.
Why this matters
The capital injection provides immediate liquidity for the infrastructure company. These warrants allow the allottees to convert their holdings into equity shares within 18 months of the September 9, 2026, allotment date. Should the conversion rights be exercised, the company will receive the remaining 75% of the capital (Rs 45 crore), though it will also lead to an expansion of the company’s equity base.
Allottee breakdown
The allotment includes both promoter and non-promoter participation:
- Likhitha Gaddipati (Promoter): 3,25,000 warrants
- Lohitha Gaddipati (Promoter Group): 3,00,000 warrants
- Chennamaneni Sushmitha (Non-Promoter): 5,00,000 warrants
- Srinivasulu Chowdary Kavuturu (Non-Promoter): 4,00,000 warrants
- Additional 17 investors: Remaining 9,75,000 warrants
Risks to watch
Investors should monitor the 18-month conversion window. If the warrants are not converted within this period, the subscription amount paid will be forfeited. Full conversion will increase the total number of outstanding equity shares, which may impact earnings per share (EPS) through dilution.
Context
This transaction follows shareholder approval via a special resolution on July 22, 2026, and subsequent in-principle clearances from both the NSE and BSE.