Milkfood Limited has successfully allotted 22,00,000 equity shares to two non-promoter investors following the conversion of warrants. The issue was priced at Rs 30 per share, comprising a face value of Rs 5 and a premium of Rs 25. This move increases the company's total paid-up share capital to Rs 13.89 crore, reflecting the completion of a previously scheduled capital raise.
Milkfood Limited Expands Equity Base via Warrant Conversion
Total Equity Shares: 2,77,96,180 | New Capital Infusion: Rs 6.6 Crore
Reader Takeaway: The warrant-to-equity conversion strengthens the company's capital base without diluting promoter control.
What just happened
Milkfood Limited has officially completed the allotment of 22,00,000 equity shares to Mr. Sudhir Avasthi and Mr. Deepankar Barat. These individuals are classified as non-promoter investors. The allotment follows the exercise of conversion rights on warrants originally issued by the company on September 7, 2026.
Why this matters
The conversion process confirms the receipt of the remaining 75% balance of the issue price from the warrant holders. By moving from warrants to equity, the company has bolstered its permanent paid-up share capital. The newly issued shares now hold the same rights as existing equity, ranking pari passu in all respects.
Impact on Capital Structure
Following this transaction, Milkfood Limited has updated its share capital structure. The total issued and paid-up capital of the company now stands at Rs 13,89,80,900, divided into 2,77,96,180 equity shares of Rs 5 each.
Allottee Profile
Mr. Sudhir Avasthi has increased his stake from 11,27,160 shares to 22,27,160 shares, while Mr. Deepankar Barat has moved from 6,98,000 shares to 17,98,000 shares. Since both individuals belong to the non-promoter category, the overall promoter holding profile of the company remains unchanged.
Context
The allotment is a final administrative step in a capital-raising exercise that was initiated in late 2026. Investors should view this as a realization of previously announced plans to convert warrants into equity capital, bringing the company's outstanding share count to its new total of 2,77,96,180.