Shiva Granito Export Board Approves Rs 9.4 Crore Preferential Capital Raise

Equity issuance of Rs 5.72 crore and convertible warrants worth Rs 3.67 crore approved.

Reader Takeaway: Company raises Rs 9.4 crore via preferential issue; expect significant equity dilution and shift in shareholding pattern.

What just happened

Shiva Granito Export Limited has announced a dual-track fundraising plan following its board meeting on October 6, 2026. The board cleared the issuance of 54,50,000 equity shares at Rs 10.50 per share, totaling Rs 5.72 crore, to non-promoter investors. Additionally, the company will issue 35,00,000 fully convertible warrants at Rs 10.50 each, totaling Rs 3.67 crore. These warrants are exercisable into equity shares within 18 months, with 25% of the payment required upfront.

Why this matters

This capital injection is aimed at strengthening the company's financial base. However, the nature of a preferential issue on this scale leads to equity dilution for existing shareholders. The post-issue projection suggests a major shift in control, where the promoter and promoter group stake is expected to drop from 44.46% to 27.54%, while public shareholding will rise from 55.54% to 72.46%.

Allotment Breakdown

The equity share issuance includes significant allotments to Five Elements Resources Pvt Ltd (20 lakh shares), Manisha Mayank (15 lakh shares), and Jyoti Tuli (7 lakh shares). The warrant issuance involves Topfilings India Capital Market Pvt Ltd (14.5 lakh warrants) and Shiva Explosives India Private Limited (10 lakh warrants).

What to track next

Shareholders should closely follow the Extra-Ordinary General Meeting (EGM) scheduled for November 5, 2026. This meeting will be the final hurdle for the approval of the preferential issue, and management is expected to provide further clarity on the specific strategic deployment of these funds.