Kizi Apparels seeks approval for 51.69 lakh warrant issue

KIZI APPARELS LIMITED has proposed up to 51.69 lakh preferential warrants for promoter-group and public investors, subject to shareholder approval. On full subscription and conversion, Kizi Apparels’ share count would increase from 101.232 lakh to 152.922 lakh shares, while promoter and promoter-group ownership would rise slightly to 59.36% from 59.30%.

What has Kizi Apparels proposed to issue?

Kizi Apparels has proposed to issue up to 51.69 lakh warrants, each convertible into one fully paid equity share with a face value of Rs 10. The board approved the preferential-allotment proposal on 30 October 2026, but the issue remains subject to approval by the company’s members at an Extraordinary General Meeting, or EGM.

Kizi Apparels said the warrants would be issued for cash and could be converted into equal numbers of equity shares at any time within 18 months of allotment. The company has not disclosed the final issue price, stating only that it would not be below the minimum price set under the Securities and Exchange Board of India (SEBI) Issue of Capital and Disclosure Requirements Regulations, 2018.

The board also approved an increase in authorised share capital to Rs 16 crore from Rs 11 crore, subject to member approval and a change to the memorandum of association. The proposed authorised capital would comprise 1.60 crore equity shares of Rs 10 each, compared with 1.10 crore shares under the current structure.

Kizi Apparels appointed registered valuer Bhavin R. Patel to value the warrants and determine their issue price. It also fixed 30 October 2026 as the relevant date for pricing, leaving the eventual amount of cash to be raised dependent on the price determined under the SEBI regulations.

Who would receive Kizi Apparels’ proposed warrants?

Kizi Apparels has named 23 proposed allottees, including six promoter or promoter-group recipients and 17 public-category recipients. The promoter and promoter-group recipients would receive 30.75 lakh warrants in aggregate, while the proposed public allocation totals 20.94 lakh warrants.

Managing Director Abhishek Nathani is the largest proposed recipient, with 8.04 lakh warrants, followed by Kiran Nathani with 6 lakh and Suchitra Nathani with 5.01 lakh. Raj Kumar Nathani, Raj Kumar Nathani & Sons HUF and Abhishek Nathani and Sons HUF would each receive 3.90 lakh warrants.

Among public recipients, Mit Bharatkumar Shah, Naitri Anilkumar Morakhiya, Ashaben Muktilal Doshi, Rutu Naman Shah and Babyvilla Clothing Private Limited would each receive 2.01 lakh warrants. Prashant Sharma would receive 1.74 lakh warrants, while Anil Surana and Anilkumar Mahendrakumar Morakhiya would each receive 1.14 lakh.

The smaller public allocations include five recipients proposed to receive 1.02 lakh warrants each and two recipients proposed to receive 15,000 each. Kizi Apparels said the post-issue ownership presentation assumes that all proposed allottees subscribe for, receive and convert their warrants.

How would Kizi Apparels’ shareholding change after conversion?

Kizi Apparels’ fully diluted shareholding would rise to 152.922 lakh shares from 101.232 lakh shares if all 51.69 lakh warrants are allotted and converted. Promoter and promoter-group ownership would increase by 0.06 percentage points to 59.36%, while the public share would decline by 0.06 percentage points to 40.64%.

The shareholding change reflects the proposed allocation of 30.75 lakh warrants to promoter and promoter-group allottees and 20.94 lakh to public allottees. The promoter category’s share count would therefore rise by 30.75 lakh shares, while public holdings would rise by 20.94 lakh shares under the full-conversion assumption.

The post-issue pattern is conditional, rather than a completed result. Kizi Apparels said the figures would change if any proposed allottee does not subscribe, is not allotted warrants or does not convert within the 18-month period following allotment.

What do Kizi Apparels’ latest financial results show?

Kizi Apparels reported revenue from operations of Rs 23.4114 crore for the half year ended 30 September 2026, compared with Rs 13.9088 crore in the half year ended 30 September 2025. Net profit was Rs 73.62 lakh in the latest half year, against Rs 56.60 lakh in the corresponding prior-year period.

Revenue declined from Rs 28.7267 crore in the half year ended 31 March 2026 to Rs 23.4114 crore in the half year ended 30 September 2026. Over the same two six-month periods, net profit increased from Rs 44 lakh to Rs 73.62 lakh; the warrant announcement does not state a specific use of proceeds.

As at 30 September 2026, Kizi Apparels reported shareholders’ funds of Rs 18.8902 crore, including share capital of Rs 10.1232 crore and reserves and surplus of Rs 8.767 crore. The balance sheet recorded no money received against share warrants on that date, before the proposed new preferential issue.

Current assets stood at Rs 31.4761 crore on 30 September 2026, including inventories of Rs 19.6052 crore and trade receivables of Rs 11.1286 crore. Current liabilities were Rs 13.5115 crore, including short-term borrowings of Rs 9.5089 crore, while total assets were Rs 32.733 crore.

When will Kizi Apparels shareholders decide on the warrants?

Kizi Apparels has convened its ninth EGM for 30 November 2026 to seek approval for the warrant issue and the authorised-capital increase. The board meeting that approved these proposals was held on 30 October 2026, beginning at 4 pm and concluding at 7 pm.

The EGM’s remote e-voting and meeting-day e-voting will be scrutinised by practising company secretary Jinang Dinesh Kumar Shah of Jinang Shah & Associates. Until members approve the proposals, the 51.69 lakh-warrant issue has not reached the allotment stage.

Following any allotment, the warrant holders would have 18 months to convert into equity shares. The filing says Kizi Apparels will intimate the outcome at allotment, while the final share count will depend on subscription, allotment and conversion by the named recipients.

Conclusion

Kizi Apparels’ proposal would add up to 51.69 lakh equity shares on full conversion, expanding the share base from 101.232 lakh to 152.922 lakh shares. The disclosed allocation would leave promoter and promoter-group ownership broadly unchanged, at 59.36% after conversion compared with 59.30% before the proposed issue.

The next scheduled event is the 30 November 2026 EGM, where members will vote on both the warrant issue and the increase in authorised capital from Rs 11 crore to Rs 16 crore. The issue price, allotment outcome and subsequent exercise of conversion rights during the 18-month window remain unresolved.