Sterlite Technologies’ board has approved issuing convertible warrants to its promoter, Twin Star Overseas Limited, for ₹498.30 Crores. This will involve issuing up to 45,300,000 warrants at ₹110 per warrant, convertible into equity shares. The company will also hold an Extraordinary General Meeting on March 4, 2026, to seek shareholder approval for the warrant issuance and related changes to the Articles of Association.
Promoter Investment via Warrants
Sterlite Technologies’ Board of Directors has approved the issuance of convertible warrants to Twin Star Overseas Limited, the company’s promoter. The decision, made on February 07, 2026, involves a preferential issue on a private placement basis. The goal is to strengthen the company’s financial position.
Key Terms of the Warrant Issue
The company will issue up to 45,300,000 warrants at a price of ₹110 per warrant, including subscription and exercise price. The total issue size aggregates to ₹498.30 Crores. Each warrant is convertible into one equity share of the company (face value ₹2) at a premium of ₹108 per share.
Shareholder Approval and EGM
The warrant issuance and alterations to the Articles of Association are subject to shareholder approval. To this end, an Extraordinary General Meeting (EGM) will be held on March 4, 2026, via video conferencing or other audio-visual means. The EGM notice will be sent separately to stock exchanges and shareholders.
Impact on Shareholding
Currently, Twin Star Overseas Limited holds 209,402,750 shares (42.90%). Post-allotment of warrants (assuming full conversion), they will hold 254,702,750 shares (47.75% on a fully diluted basis).
Warrant Conversion Details
Each warrant can be converted into one equity share, exercisable in one or more tranches within 18 months from the allotment date. If the allottee does not exercise the warrants within this period, the unexercised warrants will lapse, and the amount paid will be forfeited.
Changes to Articles of Association
The board has also approved amendments to the Articles of Association to incorporate specific clauses related to the issuance of non-convertible and convertible securities, including convertible warrants, and for other related matters.
Source: BSE
