Leo Dryfruits & Spices Trading Approves Rs 42 Crore Preferential Warrant Issue

The company will issue 70,00,000 Fully Convertible Warrants (FCWs) at Rs 60 each, aggregating to Rs 42 crore.

Reader Takeaway: Higher issue price improves valuation optics, but future dilution remains a key factor for existing shareholders.

What just happened

The Board of Directors of Leo Dryfruits & Spices Trading Ltd has formally approved the issuance of 70,00,000 fully convertible warrants to nine non-promoter allottees. Each warrant is priced at Rs 60, which includes a premium of Rs 50 over the face value of Rs 10. The company has mandated that 25% of the subscription money be paid upon allotment, with the remaining 75% due upon exercise of conversion rights within an 18-month window.

Why this matters

This capital raise effectively cancels and replaces a previous proposal from August 2026, which aimed to issue the same number of warrants at a lower price of Rs 55. By moving to a Rs 60 price point, the company is potentially signaling higher confidence in its market valuation or seeking to raise additional capital while minimizing equity dilution. The funds will be deployed largely toward working capital (Rs 36 crore) and general corporate purposes (Rs 6 crore).

The backstory

The previous proposal, approved by the board on August 08, 2026, and by shareholders on September 04, 2026, was never executed. The company confirmed that no in-principle approval applications were submitted for the older plan, and no money changed hands, allowing for a clean transition to the new, higher-priced offer.

What to track next

Shareholders should monitor the announcement of the Extraordinary General Meeting (EGM) date. The proposal requires formal member approval to proceed. Mr. Ritul Parmar has been appointed as the scrutinizer for the e-voting process to ensure regulatory compliance during the upcoming vote.