Multibagger Stock Quicktouch Technologies Approves Conversion of 93,796 Warrants Into Shares

One of India's top providers of IT solutions, Quicktouch Technologies focuses on cloud computing, data analytics & management, software, web, and app development. The small-cap IT stock is one of the stocks that has provided multibagger returns to its shareholders, but market observers are paying more attention to it now that the company has authorised the conversion of 93,796 warrants into an equivalent number of equity shares on Tuesday.

"We wish to inform you that the Board of Directors of the Company in their meeting held today i.e. Tuesday, July 02, 2024, inter-alia, considered and approved the allotment of equity shares on conversion of 93,796 warrants into 93796 equity shares at an issue price of Rs. 196.17/- each (including a premium of Rs. 186.17/- each), to "Non Promoters/Public Category", on preferential basis, upon receipt of balance amount aggregating to Rs. 1,37,99,971/- (Rupees One Crore ThirtySeven Lakh Ninety-Nine Thousand Nine Hundred Seventy-One Only) at the rate of Rs. 147.128 (Rupees One Hundred Forty-Seven and Twelve 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 Quicktouch Technologies in a stock exchange filing.

At a preferential issue price of Rs. 196.17/-per warrant, these warrants were issued to "Promoters and Promoter Group" and "Non-Promoters/Public Category" on a preferential basis. Upon payment of Rs. 49.042 per warrant, which represents 25% of the issue price, the warrant holders will be entitled to have their warrants converted into an equal number of equity shares of the company by paying the remaining 75%, or Rs. 147.128/-, within 18 months of the warrants' issuance date.

"Consequent to today's conversation of warrants/allotment of Equity Shares, the issued and paid up capital of the Company stands increased to Rs 6,32,37,960 /-consisting of 63,23,796 equity shares of Re. 10/- each. The new equity shares so allotted, shall rank pari-passu with the existing equity shares of the Company. It may be please note that 1,04,56,204 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. 147.128/- per warrant within 18 months from the date of warrant allotment," said Quicktouch Technologies in a regulatory filing.

Earlier on February 29, 2024, the company had authorised the acquisition of an entire stake in Grenew FZE, a UAE-based company. Quicktouch Technologies has invested in securities for cash consideration in order to acquire 150 shares at a price of 1,000 AED each. As a result of this transaction, Quicktouch Technologies will hold a 100% shareholding position in Grenew FZE. The transaction is expected to be completed by March 2025 at the latest.