Auto Stock In Focus On Converting 10.27 Lakh Warrants Into Shares To Raise Rs 1.46 Cr

Small-cap firm Pritika Auto Industries is in the consumer discretionary industry. After the Board of Directors of the firm announced the conversion of 10,27,000 warrants into 10,27,000 equity shares with a face value of Rs. 2/-each at an issue price of Rs. 19 to raise up to Rs 1.46 Cr, the penny stock below Rs. 50 is probably going to be in focus for the market watchers.

The Board of Directors "Considered and approved Conversion of 10,27,000 Warrants into equal number of Equity Shares of the company. Please refer to our communiqué dated 16th March, 2023 w.r.t. to allotment of warrants, the Board considered and approved the allotment of equity shares on conversion of 10,27,000 warrants into 10,27,000 equity shares of face value of Rs. 2/- each at an issue price of Rs. 19/- each (including a premium of Rs. 17/- each), to "NonPromoters/Public Category", on preferential basis, upon receipt of balance amount aggregating to Rs. 1,46,34,750/- (Rupees One Crore Forty Six Lacs Thirty Four Thousand Seven Hundred Fifty only) at the rate of Rs. 14.25 (Rupees Fourteen and Twenty Five Paise only) per warrant (being 75% of the issue price per warrant) from the allottees," said the company in a stock exchange filing.

"Pursuant to members approval, these warrants were allotted, in terms of SEBI (ICDR) Regulations, 2018 to NonPromoters/Public Category, on preferential basis, at an Issue Price of Rs. 19/- per warrant on payment of Rs.4.75 per warrant, being 25% of the Issue Price, entitling the warrants holders to get their warrants converted into equal number of Equity Shares of the Company by paying remaining 75% i.e., Rs. 14.25 within 18 months from the date of warrant allotment," said Pritika Auto Industries in a regulatory filing.

The company's issued and paid-up capital has grown to Rs 32,07,79,334 following the conversation of warrants and the allocation of equity shares. This capital is made up of 16,03,89,667 equity shares, each worth Rs 2/-. Please take note that there are currently 61,23,000 warrants available for conversion. The holders of these warrants have the authority to convert their warrants into an equivalent number of equity shares in the company by paying the remaining 75%, or Rs. 14.25/-per warrant, within 18 months of the warrants' original allotment date.

Pritika Auto Industries, a company that produces tractors and automobile components, announced a consolidated net profit of Rs 2.97 crore for the quarter that ended in December 2023. This is a growth of more than 6% year on year (YoY). The same quarter last year brought in 2.79 crore in net profit for the corporation. Nevertheless, the company said in an exchange filing that revenue from operations for the quarter fell 8.98% to Rs 70.83 crore from Rs 77.82 crore in Q3FY23.