LCC Infotech to Raise ₹122 Crore via Preferential Issue at ₹4.55/Share

Introduction

LCC Infotech Limited has announced revised terms for a significant capital infusion, planning to raise approximately ₹121.76 crore through a preferential issue of equity shares and convertible warrants. This development is part of a broader corporate restructuring that includes a change in control, with Mr. Kunjit Maheshbhai Patel set to become the new promoter. The company has issued a corrigendum to its Extra-Ordinary General Meeting (EGM) notice, updating the issue price and detailing the fund utilization strategy ahead of the shareholder vote scheduled for February 2, 2026.

Revised Fundraising Details

The company's plan to strengthen its capital base involves a two-part preferential allotment, both priced at ₹4.55 per instrument. This price was determined according to SEBI's regulations, reflecting recent market trading values. The total fundraising is aimed at bolstering the company's financial position to support its operational needs and future growth.

Pricing Mechanism Explained

The issue price of ₹4.55 for both the equity shares and convertible warrants was calculated in compliance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations. The price is the higher of the 90-day Volume Weighted Average Price (VWAP) of ₹4.55 and the 10-day VWAP of ₹4.47 on the National Stock Exchange (NSE). This transparent pricing method ensures the issue is aligned with the stock's recent market performance and establishes a floor price for the transaction.

Allocation and Use of Proceeds

LCC Infotech has outlined a clear plan for the deployment of the fresh capital. The primary objectives are to enhance working capital and address general corporate purposes, providing the necessary resources for operational stability and strategic initiatives. From the ₹19.11 crore raised via equity shares, ₹14.91 crore is designated for working capital, with the remaining ₹4.20 crore for general corporate needs. Similarly, from the ₹102.65 crore raised from warrants, ₹80.09 crore will go towards working capital and ₹22.56 crore will be used for general corporate purposes.

The Change in Control

This fundraising is intrinsically linked to a significant shift in the company's ownership. Mr. Kunjit Maheshbhai Patel is acquiring a controlling stake through a multi-step process. The transaction was initiated by a Share Purchase Agreement (SPA) signed on January 3, 2026, with the existing promoters, Shree Ram Bagla and Rachna Suman Shaw. This agreement triggered a mandatory open offer to public shareholders.

Open Offer and SPA at a Glance

The acquisition by Mr. Patel involves direct purchase from promoters and a subsequent offer to public shareholders, both priced at ₹3.55 per share. This price is distinct from the preferential issue price, as it was determined at the time of the SPA agreement.

Post-Acquisition Shareholding Structure

Upon successful completion of the SPA, the preferential allotment of equity shares to Mr. Patel, and assuming full acceptance of the open offer, his total shareholding in LCC Infotech will be substantial. This will consolidate his position and formally establish him as the new promoter, holding approximately 85.34% of the company's emerging voting share capital. The existing promoters will be reclassified as public shareholders following the sale of their stake.

Strategic Business Diversification

In line with the change in management, LCC Infotech's board has approved an expansion of its business activities. The company plans to amend its Memorandum of Association to venture into new sectors, including the entertainment industry, jewelry manufacturing and trading, construction and real estate development, and travel and tourism services. Additionally, the company's registered office is set to be relocated from West Bengal to Gujarat, aligning with the new promoter's base of operations.

Conclusion and Forward Outlook

The upcoming EGM on February 2, 2026, is a critical event for LCC Infotech's shareholders, who will vote on the proposed capital increase, preferential issues, and change in control. The successful execution of this comprehensive restructuring plan will provide the company with significant capital and a new strategic direction under fresh leadership. Investors will be closely monitoring the EGM's outcome and the subsequent deployment of funds as key indicators of the company's future trajectory.