Quant Mutual Fund Backed Stock Okays 3.50 Cr Warrants At Rs 155: Do You Own?

With a market valuation of Rs 8,046.85 Cr, Man Infraconstruction is a small-cap company in the construction industry. The company works as an engineering contractor and has completed a number of challenging, historic projects throughout India in a variety of sectors, including ports, infrastructure, residential townships, commercial projects, educational institutions, IT projects, and futuristic homes.

"Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations") and members approval obtained at the Extra Ordinary General Meeting held on Decembers 23, 2023 by means of passing a Special Resolution and 'In-Principal Approval' obtained from the Stock Exchanges i.e. National Stock Exchange of India Limited and BSE Limited on January 10, 2024, the Allotment Committee of the Board of Directors of the Company, today i.e. January 23, 2024, considered and approved the allotment of 3,50,46,100 (Three Crores Fifty Lakhs Forty Six Thousand and One Hundred) Warrants at a price (including the Warrant Subscription Price and the warrant exercise price) of Rs.155/- (Rupees One Hundred and Fifty Five only) each payable in cash (''Warrant Issue Price"), aggregating upto Rs. 543,21,45,500 (Rupees Five Hundred and Forty Three Crore Twenty One Lakh Forty Five Thousand Five Hundred only) (''Total Issue Size'') on preferential basis to the persons/ entities belonging to Non-Promoter Category (''Allottees'')," said Man Infraconstruction in a stock exchange filing.

"The Allotment Committee decided to dispose-off 200,000 Warrants which remained unsubscribed. Further we would like to confirm that the Company has received an amount of Rs. 1,35,80,36,375 (Rupees One Hundred Thirty Five Crores Eighty Lakh Thirty Six Thousand Three Hundred and Seventy Five Only) at the rate of Rs. 38. 75 (Rupees Thirty Eight and Seventy Five Paise Only) per Warrant, being 25% of the issue price as upfront payment (''Warrant Subscription Price''). Since the Company has allotted the Warrants, presently there is no change in the paid-up share capital of the Company," Man Infraconstruction said.

"Each Warrant, so allotted, is convertible into or exchangeable for one fully paid-up Equity Share of the Company having face value of Rs. 2/- (Rupee Two only) each in accordance with the provisions of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, on payment of the balance consideration of Rs. 116.25 per Warrant ("Warrant Exercise Price"), being 75% of the Warrant Issue Price from the Allottees pursuant to exercise of conversion option against each such Warrant, within 18 months from the date of allotment of Warrants," said the Board of Directors of the company in a regulatory filing.

During Q3FY24, the company reported promoters' shareholding of 67.19%, FIIs stake of 3.50%, DIIs stake of 2.09% and public stake of 27.19%. As per the shareholding pattern of Man Infraconstruction for the above said quarter, Quant Mutual Fund - Quant Small Cap Fund held 60,30,000 shares which is 1.62% of the total paid up share capital of the company.