Diana Tea Company Limited has approved the allotment of 40,74,075 convertible warrants to its promoters and promoter group. The warrants are priced at ₹27 per warrant, with a face value of ₹5 and a premium of ₹22. The allotment is a step towards potential future equity issuance, with warrant holders having the right to convert them into equity shares within 18 months. The company has received 25% of the warrant issue price at the time of allotment.
Diana Tea Company Allots Convertible Warrants
Diana Tea Company Limited announced today, November 4, 2026, the approval for the allotment of 40,74,075 convertible warrants. These warrants are designated for the company’s promoters and promoter group, reinforcing their stake and potential future shareholding in the company.
Warrant Details and Pricing
The convertible warrants have been issued at a price of ₹27 per warrant. This price includes a face value of ₹5 and a premium of ₹22. The total value of the allotment for these warrants amounts to ₹10,99,99,675 (approximately). At the time of subscription and allotment, the company has received 25% of the warrant issue price from the eligible allottees.
Conversion Rights and Tenure
Each warrant grants the holder the right to convert it into one fully paid-up equity share of the company, with a face value of ₹5. This conversion can be exercised anytime within a period of 18 months from the date of allotment. To convert, the warrant holder must pay the remaining 75% of the warrant issue price. Failure to exercise the conversion option within the stipulated 18-month period will result in the lapse of unexercised warrants, with the amounts paid forfeited by the company.
Shareholder Approval and Regulatory Compliance
The allotment of these warrants was made pursuant to the approval obtained from the shareholders at the Annual General Meeting held on September 11, 2026. The process adheres to the provisions of the Companies Act, 2013, and relevant SEBI regulations. The company has also received in-principle approval from the Bombay Stock Exchange.
Impact on Paid-up Capital
At this stage, the allotment of these convertible warrants does not result in any change to the company’s paid-up equity share capital. The full impact on equity will be realized only upon the exercise and conversion of these warrants into shares.
Source: BSE
