GRM Overseas Raises ₹86.82 Crore, Allots 2.31 Crore Shares

Introduction

GRM Overseas Limited has concluded a significant capital-raising exercise, with its Board of Directors approving the conversion of the final tranche of outstanding warrants. The move, finalized in a meeting on February 6, 2026, resulted in an infusion of ₹86.82 crore into the company and the issuance of over 2.31 crore new equity shares, which includes bonus entitlements from a previously announced corporate action.

A Strategic Capital Infusion

The board's approval pertains to the conversion of 77.18 lakh convertible warrants. These were the final part of a larger issue of 90.70 lakh warrants initially allotted on August 8, 2024, at an issue price of ₹150 per warrant. At the time of the initial allotment, investors paid 25% of the issue price, amounting to ₹37.50 per warrant. The first tranche of 13.52 lakh warrants was converted into equity shares following board approval on May 28, 2025. This latest decision completes the entire warrant conversion program initiated nearly eighteen months prior.

Breakdown of the Allotment

With this final conversion, 21 warrant holders paid the remaining 75% of the issue price, which translates to ₹112.50 per warrant. This payment has channeled a total of ₹86.82 crore into the company's treasury. In exchange, the company has allotted 77.18 lakh new equity shares with a face value of ₹2 each. This successful conversion underscores investor confidence and provides the company with substantial growth capital.

The Added Benefit: 2:1 Bonus Issue

A key aspect of this transaction is the inclusion of bonus shares for the new allottees. GRM Overseas had previously received shareholder approval for a 2:1 bonus issue at its Extraordinary General Meeting on December 9, 2025. Under the terms, eligible shareholders received two bonus shares for every one share held. The warrant holders exercising their conversion rights were also entitled to this benefit. As a result, the 77.18 lakh shares allotted from the conversion immediately qualified for an additional 1.54 crore bonus shares. This brings the total number of newly issued shares to 2.31 crore.

Key Financials of the Transaction

The transaction has significantly strengthened the company's financial position. The key figures are summarized below:

Revised Capital Structure

This substantial issuance of new shares has expanded GRM Overseas' equity base. The company's paid-up equity share capital has increased from ₹36.81 crore, comprising 18.40 crore shares, to ₹41.44 crore, which now comprises 20.72 crore shares. The company has confirmed that the newly allotted shares will rank pari-passu, or on equal footing, with the existing equity shares in all respects, ensuring uniform rights for all shareholders.

Profile of New Shareholders

The list of allottees includes a diverse mix of promoter, non-promoter, and institutional entities, signaling broad investor confidence. In the promoter category, Atul Garg and Mamta Garg each converted 5.50 lakh warrants. The non-promoter category saw significant participation from institutional investors. FORBES EMF and Coeus Global Opportunities Fund each converted 20 lakh warrants, infusing ₹22.50 crore each into the company. Singularity Equity Fund I also made a substantial investment by converting 11.70 lakh warrants. The participation of these large funds highlights strong institutional interest in the company's long-term growth strategy.

Market Reaction and Outlook

The development is a positive signal to the market, reflecting the company's ability to attract capital. On the day of the announcement, February 6, 2026, the share price of GRM Overseas Ltd closed at ₹162.98 on the NSE. The stock has been a notable performer, delivering returns of over 111% in the last year. This successful fundraising initiative enhances the company's capacity to fund its operational and expansion plans, potentially strengthening its market position further.

Conclusion

GRM Overseas has successfully bolstered its capital base by ₹86.82 crore through the complete conversion of its 2024 warrant issue. The simultaneous allotment of bonus shares has further rewarded the incoming investors. With its paid-up capital now standing at ₹41.44 crore and no warrants remaining for conversion, the company has solidified its financial foundation to pursue its strategic objectives and drive future growth.