Milkfood Limited Allots 22 Lakh Shares After Warrant Conversion

Milkfood Limited has allotted 22 lakh equity shares of face value ₹5 each following the full conversion of preferential warrants issued to Sudhir Avasthi and Deepankar Barat. The 30 October 2026 board-approved allotment, priced at ₹30 per warrant, increased Milkfood's paid-up share capital to ₹13.89809 crore.

What did Milkfood approve on 30 October 2026?

Milkfood approved the allotment of 22 lakh equity shares after the conversion of warrants issued earlier on a preferential basis. The shares were allotted at ₹30 per warrant, comprising a face value of ₹5 and a premium of ₹25 per share. The total value of the preferential issue was ₹6.60 crore.

The allottees were Sudhir Avasthi and Deepankar Barat, both classified as non-promoter public investors for the preferential issue. Each received 11 lakh shares upon conversion of the warrants. Avasthi is Milkfood's Managing Director, while Barat is identified as the company's President in the information provided.

The board approved the conversion and equity allotment on 30 October 2026. The newly allotted shares will rank pari passu with Milkfood's existing equity shares, meaning they carry the same rights as existing shares, including rights relating to dividends and voting, subject to applicable regulations.

The allotment completes the conversion of the 22 lakh warrants. Milkfood had previously approved the preferential issue of up to 22 lakh convertible warrants at ₹30 each, and the warrants did not add to paid-up equity capital until their conversion into shares.

How has the warrant conversion changed Milkfood's capital?

The conversion increased Milkfood's paid-up equity share capital to ₹13.89809 crore. Since each new share has a face value of ₹5, the 22 lakh shares added ₹1.10 crore to the company's paid-up share capital, while the balance of the ₹6.60 crore issue value represents securities premium.

The transaction is a capital-structure event rather than a revenue item. It brings the funds associated with the preferential issue into the company and expands the number of outstanding equity shares. The company had stated earlier that the full conversion could give each allottee a stake of nearly 3.96% in the expanded equity capital.

The distinction between the face value and premium is relevant to shareholders because the paid-up capital figure reflects only the nominal value of equity shares. The full amount received at conversion, however, is based on the ₹30 issue price specified for the warrants.

Why were the warrants issued to Sudhir Avasthi and Deepankar Barat?

Milkfood issued the warrants on a preferential basis to Avasthi and Barat as non-promoter allottees. The earlier proposal involved 22 lakh convertible warrants, split equally between the two individuals, at ₹30 per warrant including the ₹25 premium.

The supplied disclosures identify Avasthi as the Managing Director and Barat as the President. The conversion means that the previously issued warrants have now become equity shares, giving the two allottees direct shareholding rather than only a right to receive shares upon conversion.

Milkfood's disclosures for the quarter ended September 2026 also said there had been no deviation in the use of proceeds from the 22 lakh warrants. That disclosure accompanied the board's approval of unaudited financial results for the quarter and half year ended 30 September 2026 on 26 October.

The conversion follows a period in which the company's ownership and operating structure have seen changes. Promoter holding rose to 54.04% in the September 2026 quarter from 53.37% in the preceding quarter, while public shareholding was reported at 45.92%. These figures were reported before the 30 October share allotment.

What is Milkfood's current operating and financial context?

Milkfood manufactures and sells dairy products in India, including ghee, skimmed milk powder, whole milk powder, casein, whey powder and dairy whitener. Incorporated in 1973, the company is part of the Jagatjit Group of Industries and operates under the Food Safety and Standards Act, 2006.

The company's recent operating disclosures show mixed reference points across reporting periods. Milkfood reported standalone net sales of ₹81.22 crore for the June 2026 quarter, up 10.26% year on year. It had earlier reported standalone March 2026 net sales of ₹178.93 crore, up 13.23% year on year.

For the quarter ended September 2026, the provided information states revenue of ₹74.15 crore and a loss of ₹7.86 crore. Separately, the 26 October board outcome cited half-year revenue of ₹182.36 crore and net profit of ₹1.53 crore. These disclosures provide the immediate financial context for the share allotment but do not change the stated terms of the warrant conversion.

Milkfood has also been reshaping its operating base. Its Patiala, Punjab and Moradabad, Uttar Pradesh facilities have been identified as manufacturing locations, while the Moradabad unit was reported as being sold for ₹130 crore. The stated purpose of the sale proceeds was debt reduction and business development.

How does the share allotment matter to Milkfood investors?

The allotment matters because it increases Milkfood's outstanding equity shares and formally completes the preferential warrant transaction. Existing shareholders now hold a smaller proportion of the enlarged equity base than before the new shares were issued, while the two allottees become shareholders through their converted warrants.

For investors, the key disclosed facts are the issue price of ₹30 per share, the ₹6.60 crore total issue value, and the revised paid-up capital of ₹13.89809 crore. The shares rank equally with existing equity, so they are not a separate class of capital with different rights.

The transaction also coincides with the company's recent results disclosures and evolving ownership pattern. Milkfood had reported promoter holding of 54.04% for the September 2026 quarter, up from 53.37% in June 2026. Any later shareholding calculation would need to incorporate the 22 lakh shares allotted on 30 October.

The company has not disclosed in the supplied information a new operating target or a revised financial forecast linked to the conversion. Therefore, the direct confirmed impact is on equity capital, share count and the completion of the preferential issue rather than on a stated change in sales or profit guidance.

Conclusion

Milkfood has completed the conversion of 22 lakh preferential warrants into equity shares for Avasthi and Barat at ₹30 each. The board-approved step adds ₹1.10 crore to paid-up share capital, takes that capital to ₹13.89809 crore, and completes a preferential issue valued at ₹6.60 crore.

The next disclosed reference point for investors is Milkfood's financial reporting after the 30 September 2026 results and the updated shareholding position following the allotment. Attention will also remain on the company's stated plan to use proceeds from the Moradabad plant sale for debt reduction and business development.