Diana Tea Company Limited has announced 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 preferential issue, with 25% of the warrant issue price received from the allottees. The warrants are convertible into equity shares within 18 months and do not currently alter the company’s paid-up equity share capital.
Preferential Allotment of Convertible Warrants
Diana Tea Company Limited has finalized the allotment of 40,74,075 (Forty Lakhs Seventy-Four Thousand and Seventy-Five) Convertible Warrants. This significant issuance was approved by the company’s Preferential Issue Committee on November 4, 2026, and follows the receipt of 25% of the warrant subscription amount from the eligible allottees. The warrants are being issued on a preferential allotment basis to the company’s Promoters and Promoter Group.
Warrant Details and Pricing
Each convertible warrant is priced at ₹27 per warrant, which includes a face value of ₹5 and a premium of ₹22. The total value of the Warrants issued amounts to ₹10,99,34,025 (approximately). The warrants carry the entitlement to subscribe to and be allotted one fully paid-up Equity Share of the company, with a face value of ₹5, upon conversion.
Allottees and Their Entitlements
The allotments are distributed among:
- Sandeep Singhania: 509,260 warrants
- Sarita Singhania: 509,260 warrants
- Devang Singhania: 509,260 warrants
- Vani Singhania: 509,260 warrants
- Diana Capital Limited: 20,37,035 warrants
The total number of warrants allotted sums up to 40,74,075.
Conversion and Lapse Provisions
Warrant holders have the right to exercise their conversion option, in full or in part, at any time on or before the expiry of 18 months from the allotment date. This exercise requires the payment of the remaining 75% of the Warrant Issue Price. Should a warrant holder fail to exercise their conversion rights within this 18-month period, the unexercised warrants will lapse, and the amount paid by the warrant holders will stand forfeited by the Company.
Impact on Share 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 shares will be realized only upon the conversion of these warrants.
Pre-Issue and Post-Issue Shareholding
Details provided indicate that prior to this allotment, the proposed allottees did not hold any warrants. Consequently, the disclosure pertaining to pre and post-allotment warrant holdings is not applicable. The document also includes projections for post-issue equity shares assuming full conversion of warrants, detailing the resulting percentage of shareholding for each allottee. For instance, Sandeep Singhania’s shareholding is projected to increase from 3.28% pre-issue to 5.25% post-issue, assuming full conversion.
Meeting Details
The Preferential Issue Committee meeting where these decisions were made commenced at 12:15 P.M. and concluded at 1:00 P.M. on November 4, 2026.
Source: BSE
