Amarnath Securities seeks Rs 86.0591 lakh loan conversion

Amarnath Securities Limited has proposed converting Rs 86.0591 lakh of unsecured loans owed to 14 lenders into equity through a non-cash preferential issue, subject to shareholder and regulatory approvals. At a tentative issue price of Rs 21.70 a share, the lender schedule indicates 396,586 shares and an aggregate 11.68% post-issue holding.

What has Amarnath Securities approved for the loan conversion?

Amarnath Securities approved a preferential issue of up to 5 lakh fully paid equity shares on 14 November 2026 to convert or set off unsecured loan liabilities of Rs 86.0591 lakh. The equity shares would have a face value of Rs 10 each, and the consideration would be other than cash because it would be settled against verified balances payable to the proposed allottees.

The board approval requires shareholders to pass a special resolution through a postal ballot, alongside applicable statutory and regulatory approvals. Amarnath Securities set 20 November 2026 as the cut-off date to determine which shareholders may receive the postal-ballot notice and participate in electronic voting.

Amarnath Securities said the object of the issue is to reduce outstanding loan liabilities and strengthen its capital structure through conversion of the unsecured loans. Alongside the preferential issue, the board approved an increase in authorised share capital and a consequential amendment to Clause V of the memorandum of association, as well as proposals concerning borrowing limits, investments, loans, guarantees and charges.

The Rs 21.70 figure is not the final issue price. Amarnath Securities said the final price cannot be lower than the price determined under Chapter V of the Securities and Exchange Board of India (SEBI) Issue of Capital and Disclosure Requirements Regulations, 2018, commonly called the SEBI ICDR Regulations, and therefore the final share count remains open.

How many shares could Amarnath Securities issue to lenders?

Amarnath Securities may issue up to 5 lakh shares, while the provisional schedule calculates 396,586 shares at Rs 21.70 per share. The tentative total is 103,414 shares below the board-approved maximum, reflecting that the actual number issued will depend on the final regulatory pricing calculation.

The company reported paid-up equity share capital of Rs 3.0002 crore at 30 September 2026, unchanged from 31 March 2026. At the disclosed face value of Rs 10 a share, that capital represents 30,00,200 existing equity shares before any proposed allotment, while the board approval permits up to 5 lakh additional shares.

Under the tentative calculation, the 14 lenders would hold 11.68% in aggregate after the issue. Amarnath Securities said it would recalculate the securities allotted, post-issue shareholding and paid-up share capital after the final issue price is fixed under the applicable valuation requirements.

The announcement does not provide a final pre-issue or post-issue shareholding pattern. It also does not confirm whether control will change, saying that outcome will be determined after the shareholding pattern and promoter or promoter-group classification are finalised.

Which lenders have the largest proposed Amarnath Securities allotments?

Kinnari Chetan Patel has the largest provisional allotment, with 91,618 shares and a 2.70% post-issue holding at the Rs 21.70 tentative price. The proposed conversion for this entry is Rs 19.88101 lakh, the largest individual unsecured loan balance listed among the 14 lenders.

Chetan Balubhai Patel is the second-largest proposed allottee, with 59,382 shares for a 1.75% post-issue holding against Rs 12.88583 lakh of loans. Shakti Parekh follows with 44,931 tentative shares, a 1.32% holding and Rs 9.75 lakh proposed for conversion.

Munish, Pritam Dham and Gunjan Singh would each receive 34,562 shares, equivalent to 1.02% each under the provisional calculation. Each of those entries is linked to Rs 7.50 lakh of unsecured loans, giving the three lenders a combined tentative holding of 3.06%.

Neeraj Rathod has the smallest individual proposed holding at 0.13%, based on 4,562 shares against Rs 0.99 lakh of loans. Binesh Kiran Desai, Nikesh Kiran Desai and Swati Kiran Desai are each listed for 5,069 shares and 0.15%, with Rs 1.10 lakh proposed for conversion in each case.

What is Amarnath Securities’ financial position before the proposed issue?

Amarnath Securities reported borrowings of Rs 78.55 lakh at 30 September 2026, compared with Rs 55.95 lakh at 31 March 2026. The Rs 86.0591 lakh proposed for conversion is larger than the 30 September borrowing line, but the filing does not reconcile the lender schedule with the balance-sheet classification of borrowings.

Total financial liabilities were Rs 79.83 lakh at 30 September 2026, up from Rs 57 lakh at 31 March 2026. Other payables rose to Rs 1.27 lakh from Rs 1.05 lakh, while total assets increased to Rs 27.10 lakh from Rs 6.49 lakh over the same period.

The company recorded profit after tax of Rs 38,000 for the quarter ended 30 September 2026, compared with Rs 3.85 lakh in the quarter ended 30 September 2025. For the half year ended 30 September 2026, profit after tax was Rs 91,000, compared with Rs 8.23 lakh in the corresponding half year a year earlier.

Total income for the September 2026 quarter was Rs 6.87 lakh, compared with Rs 10.23 lakh in the September 2025 quarter. The financial-results notes state that the Rs 6.87 lakh was recognised as other income arising from the write-back of a loan amount payable to a related party, based on management’s decision.

Amarnath Securities reported negative total equity of Rs 72.13 lakh at 30 September 2026, compared with negative Rs 73.04 lakh at 31 March 2026. Its notes also state that the company’s entire net worth has been eroded, while other equity stood at negative Rs 3.7215 crore at the September reporting date.

What still needs to happen before Amarnath Securities completes the issue?

Amarnath Securities still needs shareholder approval by special resolution, the final price prescribed under the SEBI ICDR Regulations and other applicable approvals before it can complete the preferential issue. The company appointed Jagannath Bhunia, a practising company secretary, to scrutinise the postal-ballot e-voting process.

After allotment, Amarnath Securities said it will inform the stock exchange of the actual securities issued, issue price and subscription outcome. That disclosure is expected to resolve the difference between the current maximum of 5 lakh shares and the provisional 396,586-share calculation.

The filing also says the final post-issue shareholding and paid-up capital will be recalculated using the final price, rather than the provisional Rs 21.70 price. The status of any change in control will likewise be confirmed only after finalising the shareholding pattern and promoter or promoter-group classification.

Conclusion

The proposed issue would replace Rs 86.0591 lakh of unsecured loan obligations with equity instead of new cash proceeds. At the tentative Rs 21.70 price, the 14 lenders would receive 396,586 shares and hold 11.68% collectively, while the largest individual proposed holding would be Kinnari Chetan Patel’s 2.70%.

The next disclosed milestone is the 20 November 2026 postal-ballot cut-off date, followed by the shareholder vote and the regulatory pricing exercise. Investors will need to watch for Amarnath Securities’ final issue price, actual allotment size, final shareholding pattern and confirmation of whether the transaction changes control.