Leo Dryfruits & Spices Proposes Rs 42 Crore Preferential Warrant Issue

Issue Size: 70,00,000 convertible warrants at Rs 60 per unit.
Planned Capital: Rs 42 crore earmarked for working capital and corporate needs.

Reader Takeaway: This capital injection targets working capital growth, though its success depends on the upcoming EGM approval.

What just happened

Leo Dryfruits & Spices Trading Limited has announced an Extraordinary General Meeting (EGM) for November 14, 2026, to seek shareholder approval for a preferential issuance of 70 lakh fully convertible warrants. Each warrant is priced at Rs 60, including a premium of Rs 50, totaling a fundraising goal of Rs 42 crore. This proposal replaces a prior resolution from September 4, 2026, which lapsed due to pending regulatory formalities.

Why this matters

The funds will be utilized primarily for working capital (Rs 36 crore) and general corporate purposes (Rs 6 crore). This capital infusion is intended to strengthen the company’s liquidity position. The warrants offer a conversion option into one equity share each, exercisable within 18 months, with 25% of the payment due at allotment and the remainder upon exercise.

The backstory

The company previously attempted a similar fundraising exercise in September 2026. This new resolution is designed to clear the hurdles that stalled the previous attempt. The proposed issue price of Rs 60 per warrant sits above the SEBI-mandated floor price of Rs 59.36 and the valuation report figure of Rs 53.45, providing a clear justification for the pricing.

Risks to watch

Investors should note that the warrants will be subject to standard SEBI lock-in requirements. Furthermore, as this is a preferential issue to non-promoter entities, market sentiment will depend on the credibility of the allottees, which include firms like Shree Ram Realites and individual investors.

What to track next

The critical milestone is the EGM on November 14, 2026. Shareholders should track the voting results and the subsequent timeline for allotment and fund utilization, which the company expects to manage over the next two years.