Shlokka Dyes Ltd has scheduled an Extraordinary General Meeting (EGM) for November 28, 2026, to approve a comprehensive fund-raising exercise. The company plans to increase its authorized share capital and issue both equity shares and convertible warrants at Rs 35 per unit to raise over Rs 24 crore. The infusion is earmarked for working capital and general corporate purposes, with promoter participation in the warrant issuance signaling management confidence in long-term growth.
Shlokka Dyes to Raise Rs 24.5 Crore via Preferential Issue
Shlokka Dyes Ltd is set to expand its capital base through a dual-track fundraising strategy involving new equity shares and convertible warrants.
Reader Takeaway: The company aims to raise Rs 24.5 crore for working capital, though existing shareholders face equity dilution.
What just happened
The company has issued a notice for an Extraordinary General Meeting (EGM) scheduled for November 28, 2026. The agenda includes increasing the authorized share capital from Rs 22 crore to Rs 29 crore to accommodate new issuances. Shlokka Dyes plans to issue 31 lakh equity shares at Rs 35 each and 39 lakh convertible warrants at the same price.
Why this matters
The fundraising is critical for the company’s liquidity requirements. Approximately Rs 18.61 crore of the total proceeds is earmarked specifically for working capital, with the remainder allocated to general corporate purposes. This capital injection is expected to strengthen the balance sheet as the company pursues its operational objectives.
The backstory
The company currently has a pre-issue equity base of 2,14,08,548 shares. Upon the successful completion of the equity issue and the full conversion of the 39 lakh warrants within the 18-month window, the total equity count will rise to 2,84,08,548 shares. This represents a significant expansion of the equity structure.
Risks to watch
Existing shareholders should be aware of the dilution impact resulting from the issuance of new equity shares and warrants. Investors must also monitor the warrant conversion process, as full conversion is contingent upon the payment of the remaining 75% of the exercise price over the next 18 months.
What to track next
The EGM will serve as the final approval step. Shareholders should note the remote e-voting window which opens on November 25, 2026, and closes on November 27, 2026, ahead of the meeting on November 28.