Manoj Ceramic to Convert Preference Shares to Preserve Liquidity

Conversion of 2,50,000 NCRPS into CCPS.
Promoter shareholding expected to rise to 54.23% from 53.40%.

Reader Takeaway: The conversion preserves immediate cash liquidity but results in minor equity dilution for existing shareholders.

What just happened

Manoj Ceramic Limited has formally proposed the conversion of its existing 15% Non-Cumulative Redeemable Preference Shares (NCRPS) into 15% Compulsorily Convertible Preference Shares (CCPS). The company has called for an Extra-Ordinary General Meeting (EGM) on October 15, 2026, to secure the necessary shareholder authorization for this restructuring.

Why this matters

The primary driver for this shift is liquidity management. By moving away from redeemable instruments, the company avoids an immediate cash outflow required for redemption. The conversion involves shares currently held by promoters Manoj Dharamshi Rakhasiya and Dhruv Manoj Rakhasiya. Each CCPS will have a face value of Rs 100 and will convert into one equity share of Rs 10 face value at a premium of Rs 90 within an 18-month window.

What changes now

Upon approval, the company will initiate the conversion process, with a full conversion of any unexercised shares mandatory by the end of the 18-month tenure. The promoter group’s equity stake is projected to increase from 53.40% to 54.23% post-conversion, reflecting the capitalization of these instruments into common equity.

What to track next

Investors should monitor the outcome of the EGM on October 15, 2026, and the subsequent regulatory filings regarding the allotment of the CCPS. The specific timing of the conversion within the 18-month window will also be critical for tracking equity dilution patterns.