Mudunuru seeks approval for 2.48 crore warrants, 33.70 lakh shares

Mudunuru Limited has proposed preferential allotments of 2.48 crore convertible warrants and 33.70 lakh equity shares at Rs 2 each, with the warrant issue carrying a potential value of Rs 4.9667842 crore if fully subscribed and converted. The board approved the proposals on 12 November 2026, subject to shareholder and applicable regulatory approvals.

What is Mudunuru proposing to issue?

Mudunuru is proposing up to 2,48,33,921 convertible warrants and up to 33,70,000 equity shares through separate preferential allotments at Rs 2 per security. The warrant issue is proposed for promoter-group and public-category investors, while the direct equity issue is proposed for one non-promoter public investor. Both proposals require shareholder approval at the Extra-Ordinary General Meeting, or EGM, scheduled for 12 December 2026.

At the stated price, the 2,48,33,921 warrants represent a potential subscription value of Rs 4.9667842 crore, while the 33,70,000 direct equity shares represent Rs 67.40 lakh. Together, the two proposals cover 2,82,03,921 securities with an aggregate potential value of Rs 5.6407842 crore. The company has not described the warrant value as immediate proceeds because the instruments remain convertible until conversion.

The board also proposed raising authorised share capital to Rs 12.50 crore from Rs 9 crore, subject to shareholder approval at the 12 December 2026 EGM. The proposed authorised capital would comprise 6.25 crore equity shares of Rs 2 each, compared with 4.50 crore shares under the existing authorised-capital structure. This proposal accompanies, but is separate from, the two preferential allotments.

Who would receive Mudunuru's proposed warrants and shares?

Mudunuru has named five proposed warrant allottees. Three are classified as promoter-group investors: Vindhya Mudunuru and Sloka Mudunuru are each proposed to receive 66,04,000 warrants, and Sandhya Kutcherlapati is proposed to receive 33,70,000 warrants. Their combined proposed allocation is 1,65,78,000 warrants.

The remaining 82,55,921 warrants are proposed for two non-promoter or public-category investors. T. Kiran is proposed to receive 21,63,921 warrants and Dheeksha Buddharaju is proposed to receive 60,92,000 warrants. At Rs 2 each, the proposed warrant allocations to Vindhya Mudunuru and Sloka Mudunuru each have a potential value of Rs 1.3208 crore, while Dheeksha Buddharaju's proposed warrants have a potential value of Rs 1.2184 crore.

Dheeksha Buddharaju is also the sole proposed allottee in the direct equity issue, with 33,70,000 shares proposed at Rs 2 each. This direct allotment has a stated value of Rs 67.40 lakh. Across both proposals, Dheeksha Buddharaju is proposed to receive 94,62,000 securities, comprising 60,92,000 warrants and 33,70,000 equity shares.

When can Mudunuru warrants become equity shares?

Mudunuru's proposed 2,48,33,921 warrants can be converted into an equal number of equity shares with a face value of Rs 2 each within 18 months of warrant allotment. The 12 November 2026 filing does not specify an allotment date, so the 18-month period would start only after the approvals and allotment required for the proposed issue.

The company states that the upfront amount paid on warrants, along with unconverted warrants, would be forfeited if conversion does not take place within the 18-month tenure. The filing does not disclose the amount payable upfront on the warrants. Accordingly, Rs 4.9667842 crore is the full potential value of the warrant issue at Rs 2 per warrant, not a disclosed amount that will necessarily be received immediately.

The 33,70,000 direct equity shares have no conversion condition because they are proposed as equity shares rather than convertible instruments. If allotted, those shares would be issued directly, whereas the potential 2,48,33,921 shares linked to warrants would be issued only upon conversion. The company’s post-issue ownership presentation assumes all warrants are both subscribed and converted.

How would Mudunuru's ownership change after the issue?

Mudunuru states that promoters would hold 55.42% of post-issue capital and the public would hold 44.58%, assuming every proposed convertible warrant is subscribed and converted into equity shares. The filing gives this as a conditional post-issue outcome and does not disclose the company’s current promoter-public shareholding split.

The promoter-group allocation of 1,65,78,000 warrants equals about two-thirds of the total 2,48,33,921-warrant proposal. Public-category investors are proposed to receive 82,55,921 warrants, while the separate direct allotment of 33,70,000 shares is entirely classified as non-promoter or public. The stated 55.42% promoter holding therefore reflects the proposed allocation and full-conversion assumption.

Mudunuru reported paid-up equity share capital of Rs 6.544 crore at 30 September 2026, with a face value of Rs 2 per share. The two proposed issues could result in up to 2,82,03,921 additional securities when the direct shares and full warrant conversion are considered together. The proposed increase in authorised capital to Rs 12.50 crore would raise the authorised number of Rs 2 shares to 6.25 crore from 4.50 crore.

What other decisions did Mudunuru make on 12 November 2026?

Mudunuru’s board also approved the acquisition of a 51% equity stake in Mudunuru Hospitality Private Limited for cash consideration of Rs 5.10 lakh. The target was incorporated on 4 November 2026, operates in the hospitality sector, and is proposed to become a subsidiary. The company indicated that it expects to complete the acquisition before 31 December 2026.

Management said the acquisition forms part of a plan to expand through strategic investments in other companies, diversify operations, enhance operational capabilities and explore growth opportunities. The filing identifies cash as the form of consideration and says no governmental or regulatory approvals are required. It does not disclose turnover for Mudunuru Hospitality Private Limited, which had been incorporated eight days before the board meeting.

The board also considered unaudited financial results for the quarter and six months ended 30 September 2026. Revenue from operations rose to Rs 1.4233 crore in the September 2026 quarter from Rs 36.06 lakh a year earlier. Net profit was Rs 5.18 lakh, compared with a net loss of Rs 81.62 lakh in the September 2025 quarter.

For the six months ended 30 September 2026, revenue from operations was Rs 1.8723 crore, compared with Rs 89.42 lakh in the corresponding prior-year period. The six-month net loss narrowed to Rs 77.16 lakh from Rs 1.5139 crore. Mudunuru reported that it operates in IT consulting, software services and dairy supply, and did not prepare separate segment reporting under Indian Accounting Standard 108 on operating segments.

Conclusion

Mudunuru’s proposed capital actions combine 2,48,33,921 convertible warrants with 33,70,000 direct equity shares, all priced at Rs 2 each. The full warrant issue has a potential value of Rs 4.9667842 crore, and the combined proposals have potential value of Rs 5.6407842 crore. The company’s disclosed ownership outcome is a 55.42% promoter stake after full warrant subscription and conversion.

The next disclosed event is the EGM on 12 December 2026, when shareholders will consider the two preferential allotments and the authorised-capital increase from Rs 9 crore to Rs 12.50 crore. If warrants are allotted, holders would have 18 months from allotment to convert them, while Mudunuru has separately targeted completion of its 51% hospitality acquisition before 31 December 2026.