FII Stake Booms In Q3: Auto Stock Okays 60 Lakh Warrants Into Shares At Rs 17/Each

During Wednesday's morning trading session, Pritika Auto Industries Ltd, a small-cap company in the auto industry, registered a market worth Rs 380 Cr. The stock saw a rise of 4.95% over the previous close when it started at Rs 43.45 per share. The rise in the value of the stock took place as the corporation announced that 60 lakh warrants would be converted into shares.

"Please refer to our communique dated 16th March, 2023 w.r.t. to allotment of warrants, considered and approved the allotment of equity shares on conversion of 60,00,000 warrants into 60,00,000 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 "Non-Promoters/Public Category", on preferential basis, upon receipt of balance amount aggregating to Rs. 8,55,00,000 (Rupees Eight Crore Fifty Five Lacs 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 pursuant to the exercise of their rights of conversion into equity shares," said Pritika Auto Industries in a stock exchange filing on Wednesday.

"Pursuant to members approval, these warrants were allotted, in terms of SEBI (ICDR) Regulations, 2018 to Non-Promoters/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. Consequent to today's conversation of warrants/allotment of Equity Shares, the issued and paid-up capital of the Company stands increased to Rs 31,87,25,334 consisting of 15,93,62,667 equity shares of Rs. 2/- each," said the Board of Directors of the company in a regulatory filing.

"The new equity shares so allotted, shall rank pari-passu with the existing equity shares of the Company. It may be please note that 71,50,000 total warrants are outstanding for conversion and these warrant holders are entitled to get their warrants converted into equal number of Equity Shares of the Company by paying remaining 75% i.e., Rs. 14.25/- per warrant within 18 months from the date of warrant allotment," Pritika Auto Industries further added.

The Board of Directors also considered and authorised the capital raising by Pritika Engineering Components Limited (PECL), a subsidiary of the company, contingent upon approval from PECL members and other necessary approvals and permissions. This was accomplished by means of a preferential issue of up to 32,00,000 equity shares with a face value of Rs. 10/-each to the Promoter/Promoter Group and Strategic Investors (Non Promoter-Public Category), as well as up to 6,00,000 convertible warrants, at a price not determined yet.

The Board also gave consideration to and approved the company's investment of up to 15,00,000 equity shares with a face value of Rs. 10/-each in the company's subsidiary, Pritika Engineering Components Ltd. (PECL), to be issued on a "preferential allotment basis" at a price not to be less than the specified amount determined in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018 in relation to the "conversion of its Outstanding unsecured Loans/advances into equity shares.

In addition, the Board approved the company's investment of up to 6,00,000 warrants, convertible into equity shares with a face value of Rs. 10/-each in "Pritika Engineering Components Ltd.," a subsidiary of the company. These shares will be issued on a "preferential allotment basis" at a price not to be less than the specified price determined in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations of 2018.

During Q3FY24, the company recorded promoters' shareholding of 68.38%, FIIs stake of 2.41%, and public stake of 29.21% compared to 48.54% promoters' stake, 1.34% FIIs stake, and 50.11% public stake in Q2FY24.