Eventions expanded equity base while promoter group kept 99.96%

Eventions expanded its paid-up equity share base from 10,000 shares one year before the red herring prospectus to 89,53,509 shares before the issue. The increase came from two bonus issues, a rights issue and a share-swap allotment, while the promoter group held 89,49,909 shares, or 99.96% of pre-issue capital.

How did Eventions expand its equity base?

Eventions increased paid-up equity capital from Rs 1 lakh at incorporation on December 15, 2020 to Rs 8.95 crore before the issue. Each of the 89,53,509 outstanding equity shares had a face value of Rs 10 and was fully paid-up. Eventions disclosed one class of share capital, with no preference shares, outstanding convertible securities or warrants as of the red herring prospectus date.

The main expansion occurred in September 2025 and March 2026. On September 29, 2025, Eventions issued 4,90,000 shares through a bonus issue and 4,90,000 shares through a rights issue, taking its cumulative share count from 10,000 to 9,90,000. It then issued 79,20,000 shares through a March 2026 bonus issue and 43,509 shares through a March 10, 2026 preferential issue connected to a share swap.

The 89,43,509-share increase was concentrated in the period before the proposed listing. Eventions’ table for one year before the red herring prospectus shows the same 10,000-share capital base as its incorporation record, held 75% by Cristo Arora and 25% by Ravi Rajak. The capital-history table dates the March bonus allotment to March 4, 2026, while the detailed allottee schedule records it as March 5, 2026.

What did the bonus and rights issues do to Eventions’ equity base?

Eventions used a 1:49 bonus issue on September 29, 2025 and a 1:8 bonus issue in March 2026 to increase the number of shares without a cash subscription price. A bonus issue is an allotment of additional shares to existing holders through capitalisation of reserves. The September 2025 bonus issue added 4,90,000 shares, while the March 2026 bonus issue added 79,20,000 shares.

The September 29, 2025 rights issue added a further 4,90,000 shares for cash at Rs 10 per share, equal to the Rs 10 face value. A rights issue gives existing shareholders an opportunity to subscribe for new shares, and Eventions identified the stated benefit of this allotment as an infusion of funds. The company’s share-capital history shows paid-up capital increasing from Rs 50 lakh after the first bonus issue to Rs 99 lakh after the rights issue.

The distributions show why the share expansion did not materially broaden ownership. Cristo Arora received 2,40,002 bonus shares and 2,40,000 rights shares in September 2025, while Ravi Rajak received 2,45,000 shares in each allotment. In the March 2026 bonus issue, the two received 38,79,200 and 39,60,000 shares respectively, together accounting for 78,39,200 of 79,20,000 shares issued.

How did the Gantu Online share swap affect Eventions’ capital structure?

Eventions issued 43,509 equity shares on March 10, 2026 through a preferential issue for consideration other than cash. The issuance followed a share-swap agreement through which Eventions acquired 70% of Gantu Online Private Limited. Unlike the two bonus issues, the preferential shares were issued at Rs 15.55 each rather than without an issue price.

The allotment went to Cristo Arora, who received 18,529 shares, and Ravi Rajak, who received 24,980 shares. It raised cumulative paid-up capital from Rs 8.91 crore after the March bonus issue to Rs 8.95 crore. Eventions describes the transaction as a private placement pursuant to a swap and identifies its stated benefit as the acquisition of a subsidiary.

The four transactions had distinct mechanisms and effects. The two bonus issues capitalised reserves, the September 2025 rights issue brought cash into Eventions, and the March 2026 preferential issue used equity as consideration for a 70% subsidiary acquisition. Eventions also stated that it had not issued equity shares out of revaluation reserve or reserves without accrual of cash resources.

Did Eventions’ promoter group retain control after the expansion?

Eventions’ promoter group retained 99.96% of its 89,53,509 pre-issue equity shares despite the increase from 10,000 shares. Promoters held 88,99,059 shares, or 99.39% of paid-up capital, and promoter-group members held another 50,850 shares, or 0.57%. The public held 3,600 shares, representing the remaining 0.04%, across two shareholders.

Cristo Arora held 43,82,629 shares, or 48.95% of pre-issue capital, while Ravi Rajak held 44,79,980 shares, or 50.04%. Together they held 88,62,609 shares, equal to 98.98% of Eventions’ paid-up capital. Kirat Ahluwalia, the third named promoter, held 36,450 shares, or 0.41%, according to the pre-issue ownership table.

The ownership concentration reflects allotment patterns in the September 2025 and March 2026 transactions. The two largest shareholders received nearly all shares in both bonus issues, all 4,85,000 rights shares allocated to them, and all 43,509 shares in the swap-related preferential issue. Eventions had seven shareholders as of the red herring prospectus date, with promoter and promoter-group holdings accounting for 89,49,909 shares.

What limits and lock-ins apply to Eventions’ capital structure?

Eventions stated that it would make no further capital issue between the red herring prospectus date and listing, whether through bonus shares, preferential allotment, rights issue or another method. It also disclosed no present intention or proposal to alter capital structure through a share split, consolidation or further equity issue for six months from the opening of the issue.

The disclosed exception concerns acquisitions and joint ventures. Eventions may consider additional capital to fund such activity or use equity shares as consideration for an acquisition or joint venture. That exception is relevant to the March 10, 2026 transaction, in which 43,509 shares were issued in connection with the acquisition of a 70% holding in Gantu Online Private Limited.

Eventions also disclosed lock-ins under the Securities and Exchange Board of India’s Issue of Capital and Disclosure Requirements Regulations, or SEBI ICDR Regulations. A total of 25,00,000 shares, stated as 20.52% of post-issue paid-up capital, are identified as minimum promoter contribution and are subject to a three-year lock-in from allotment in the public issue. The balance pre-issue capital of 64,53,509 shares is subject to the stated one-year and two-year lock-in framework for holdings exceeding the minimum promoter contribution.

Conclusion

Eventions reshaped its pre-issue capitalisation through 4,90,000 bonus shares, 4,90,000 rights shares, 79,20,000 further bonus shares and 43,509 shares issued in a swap-related placement. Paid-up capital rose from Rs 1 lakh to Rs 8.95 crore, but ownership remained concentrated: the promoter group held 99.96% and Cristo Arora and Ravi Rajak together held 98.98% of pre-issue capital.

The next capital-structure change to watch is whether Eventions uses its disclosed acquisitions and joint-ventures exception after listing. Eventions has stated that it has no present proposal for a split, consolidation or further equity issue for six months from the issue opening, except where it may require capital or equity consideration for an acquisition or joint venture.