Diana Tea Company Allots 40.74 Lakh Warrants at ₹27 Each

Diana Tea Company Limited allotted 40.74 lakh convertible warrants at ₹27 each to five promoter-group allottees on November 4, 2026, raising ₹2.75 crore upfront against a total potential subscription of ₹11 crore. Each warrant can be converted into one equity share within 18 months, subject to payment of the balance amount.

What did Diana Tea approve on November 4, 2026?

Diana Tea approved the allotment of 40,74,075 equity convertible warrants on a preferential basis through its Preferential Issue Committee. The warrants were issued to promoters and promoter-group members at ₹27 per warrant, comprising a face value of ₹5 and a premium of ₹22.

The allotment followed the company’s earlier proposal for a preferential warrant issue of up to 40,74,075 warrants. The committee acted after receiving 25% of the issue price from the allottees. Based on the ₹11 crore aggregate issue size, the upfront receipt is ₹2.75 crore.

The warrants do not immediately change Diana Tea’s paid-up equity share capital. Equity shares will be issued only when warrant holders exercise their conversion option. The company stated that the warrants may be converted in one or more tranches during the 18-month conversion period.

Who received the warrants and what are the conversion terms?

Diana Tea allotted the warrants to Sandeep Singhania, Sarita Singhania, Devang Singhania, Vani Singhania and Diana Capital Limited. Each warrant gives its holder the right to subscribe to one fully paid-up equity share of face value ₹5 on conversion.

Diana Capital Limited received 20,37,035 warrants, or nearly half of the total allotment. The filing identified the corporate promoter entity as the largest recipient, while the individual promoter-group members were also included among the five allottees.

The holders must pay the remaining 75% of the ₹27 issue price when they elect to convert the warrants. If the conversion right is not exercised within 18 months from the allotment date, the warrants will lapse and the amount already paid will be forfeited, according to the disclosed terms.

How did the preferential issue receive approval?

Diana Tea’s shareholders approved the warrant issue at the annual general meeting held on September 11, 2026. The company subsequently received in-principle approval from BSE on October 26, 2026, before the Preferential Issue Committee completed the allotment on November 4.

The sequence reflects the steps required for a listed company to issue convertible warrants on a preferential basis, including shareholder consent and exchange-level approval. The company’s filing also referred to compliance with applicable SEBI requirements.

The annual general meeting additionally endorsed the adoption of a new Memorandum and Articles of Association. However, the November 4 filing specifically concerned the allotment of the promoter-group warrants and the terms attached to their conversion.

What does the warrant allotment mean for shareholders?

Diana Tea’s outstanding equity share count remains unchanged immediately after the warrant allotment because the instruments have not yet been converted. If all 40,74,075 warrants are exercised, the company will issue the same number of new equity shares, creating dilution for shareholders who do not participate in the issue.

The issue also gives the promoter group a mechanism to add capital in stages. The initial 25% payment has been received, while the remaining 75% is contingent on conversion. The company has not disclosed a separate use-of-proceeds breakdown in the information provided with the allotment update.

The disclosed post-conversion illustrations show that ownership within the promoter group may change. Diana Capital Limited’s stake was projected to decline marginally from 54.56% to 53.59% after conversion, while Sandeep Singhania’s holding was projected to increase from 3.28% to 5.25%.

Why is this relevant to Diana Tea’s operating and financial context?

Diana Tea operates three owned tea estates in the Dooars region of West Bengal. The company reported revenue of ₹88.07 crore for the year ended March 2026. The warrant issue is therefore a corporate action that combines an immediate promoter payment with a potential further inflow if conversion takes place.

Promoter holding in Diana Tea stood at 61.34% in the latest reported quarter and was also 61.34% in the preceding quarter. The preferential issue is limited to promoter and promoter-group allottees, so its eventual ownership effects will depend on the extent and timing of conversion and the resulting enlarged share capital.

For investors, the main measurable factors are the 18-month exercise period, the unpaid 75% of the warrant price and the potential addition of 40.74 lakh equity shares. No share-price movement or market reaction was disclosed in the company material provided.

Conclusion

Diana Tea has completed the first stage of its ₹11 crore preferential warrant issue by allotting 40.74 lakh instruments at ₹27 each and collecting ₹2.75 crore upfront. The transaction does not alter paid-up share capital now, but full conversion would add 40.74 lakh equity shares and change the ownership mix among shareholders.

The next disclosed point to watch is the conversion period ending 18 months after the November 4, 2026 allotment. Investors can track whether the warrant holders pay the remaining 75% and convert their instruments, or allow unexercised warrants to lapse under the issue terms.