KP Green Engineering’s ₹100 crore warrants could lift Patel stake

KP Green Engineering Limited on November 13, 2026 approved a proposed ₹100 crore preferential warrant issue to Dr. Faruk G. Patel that, if fully converted, would lift his holding from 57.87% to 60.57%, subject to shareholder and other required approvals.

What is KP Green Engineering proposing?

KP Green Engineering is proposing to issue up to 34,24,657 fully convertible equity warrants to Dr. Faruk G. Patel, who belongs to the promoter category. The board approved the proposal on November 13, 2026 at an issue price of ₹292 per warrant, including a ₹5 face value and a ₹287 premium. Each warrant carries the right to subscribe to one equity share.

The company has structured the transaction as a preferential issue on a private-placement basis under the Companies Act, 2013 and Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. The board fixed November 11, 2026 as the relevant date for determining the regulatory floor price and said the ₹292 issue price was not below that price.

At the maximum size, the 34,24,657 warrants would aggregate to ₹100 crore. The company disclosed one proposed investor, Dr. Faruk G. Patel, rather than multiple allottees, meaning the proposed transaction combines a potential capital inflow with a possible increase in the named promoter investor’s ownership.

How would the warrant payments and conversion work?

KP Green Engineering would receive 25% of the ₹292 warrant price when the warrants are allotted, while the remaining 75% would be payable when the holder exercises the attached option and equity shares are allotted. The full ₹100 crore potential proceeds therefore depend on conversion of all 34,24,657 warrants.

Each warrant is exercisable into one equity share with a face value of ₹5. The warrants have a tenor of 18 months from their allotment date and may be exercised in one or more tranches, so share issuance need not occur in a single transaction.

The 25%-and-75% payment structure means the amount received at allotment will be lower than the maximum ₹100 crore value. The company did not disclose a specified use of proceeds in its November 13, 2026 announcement, and it reported no cancellation or termination of the proposal.

How would Patel’s shareholding change after full conversion?

Dr. Faruk G. Patel’s holding would rise to 3,23,57,168 shares, or 60.57%, following full conversion of the proposed warrants. Before the issue, KP Green Engineering disclosed his holding at 2,89,32,511 shares, equal to 57.87% of the company’s share capital.

The stated full-conversion outcome represents an increase of 34,24,657 shares and 2.70 percentage points in ownership, from 57.87% to 60.57%. The additional shares match the number of warrants proposed, while the percentage calculation also reflects the larger share base after conversion.

The 60.57% figure is conditional rather than immediate. KP Green Engineering specifically stated that the post-issue percentage assumes full conversion of the warrants, which may occur in one or more tranches during the 18-month exercise period.

When will shareholders decide on the warrant issue?

KP Green Engineering has scheduled an Extra-Ordinary General Meeting for December 11, 2026 to seek shareholder approval for the preferential warrant issue. The meeting will be held through video conference or other audio-visual means, and the company said the notice and related documents would be submitted separately.

The November 13, 2026 board meeting began at 2:25 p.m. and concluded at 2:55 p.m. In addition to the warrant proposal, the board approved unaudited standalone and consolidated financial results for the half year ended September 30, 2026.

Shareholder approval is a required next step before the proposed preferential issue can proceed. The company also stated that other regulatory and statutory approvals may be required, so neither allotment nor the possible 60.57% promoter holding follows solely from the board decision.

What do the latest standalone figures show?

KP Green Engineering reported standalone revenue from operations of ₹678.76 crore for the half year ended September 30, 2026, compared with ₹532.07 crore in the half year ended September 30, 2025. Profit for the period was ₹34.43 crore, compared with ₹58.31 crore in the corresponding prior-year half year.

Standalone total income reached ₹682.02 crore for the September 2026 half year, versus ₹535.98 crore a year earlier, while total expenses rose to ₹632.32 crore from ₹457.42 crore. Profit before tax was ₹49.69 crore, down from ₹78.43 crore in the September 2025 half year.

The company’s standalone balance sheet showed total assets of ₹1,831.35 crore at September 30, 2026, compared with ₹1,586.56 crore at March 31, 2026. Total equity was ₹490.52 crore at September 30, while total borrowings, including current and non-current borrowings, were ₹447.40 crore.

Conclusion

KP Green Engineering’s proposed ₹100 crore preferential issue would give one promoter-category investor the right to acquire up to 34,24,657 shares at ₹292 each. Full conversion would increase Dr. Faruk G. Patel’s shareholding by 2.70 percentage points to 60.57%, while the company would collect 25% at warrant allotment and the remaining 75% only on exercise.

The next disclosed event is the December 11, 2026 Extra-Ordinary General Meeting. If shareholders approve the proposal and required approvals are received, the matters to watch are the warrant allotment date, the initial 25% payment, any exercise tranches within 18 months, and whether all 34,24,657 warrants are converted into shares.