Rajasthan Tube ₹93 Cr Warrants Plan: Aug 2026 Approval

What the company announced

Rajasthan Tube Manufacturing Company Ltd. (RAJTUBE) has moved ahead with a preferential fundraise plan through convertible warrants. The board approved raising up to ₹93.15 crore by issuing 6.21 crore convertible warrants on a preferential basis. The warrants are proposed to be issued at ₹15 per warrant to 53 investors. The fundraise is not final yet and remains subject to shareholder approval. The company has scheduled an Extraordinary General Meeting (EGM) on August 20, 2026 for the required shareholder nod.

The development follows an earlier disclosure that the company would consider a preferential issue route at a board meeting scheduled for July 24, 2026. In that disclosure, Rajasthan Tube had said it would evaluate equity shares, convertible warrants, or other instruments on a private placement basis, subject to regulatory and shareholder approvals. The latest board approval provides size and pricing details that were not available at the proposal stage.

Board decision and the instrument chosen

As per the disclosed terms, Rajasthan Tube’s board approved issuing convertible warrants rather than immediately issuing equity shares. Convertible warrants typically allow the holder to convert into equity shares later, as per the terms of the instrument and regulatory requirements. The company’s board approval covers both the amount to be raised and the number of warrants proposed.

The issuance is on a preferential basis and is proposed to be allotted to 53 investors. The disclosure indicates that the company is pursuing a private placement style capital raise, which is commonly used when a company seeks quicker access to funds compared with a wider public offering. However, the preferential issue still requires shareholder approval and other applicable clearances.

Key terms: size, price, and number of allottees

The key terms disclosed are straightforward and quantifiable. Rajasthan Tube plans to raise up to ₹93.15 crore. It plans to do this by issuing 6.21 crore convertible warrants. Each warrant is priced at ₹15. The company has stated that 53 investors are proposed as allottees under this issuance.

These details matter because earlier disclosures around the July 24 meeting had explicitly noted that the issue size, issue price, and the names and categories of proposed allottees were not disclosed at that time. The new disclosure fills in several of those gaps, at least on size, price, and number of investors, while the deal still remains subject to shareholder approval.

Shareholder approval: why the August 20 EGM matters

The company has scheduled an EGM on August 20, 2026 to seek shareholder approval for the preferential issue. In a preferential allotment, shareholder approval is a key procedural requirement because it authorises the company to issue securities to selected investors under the applicable rules.

The earlier board-meeting intimation had also stated that directors would consider fixing the date, time, and venue for an EGM, and approve the EGM notice. The August 20 date is therefore the next formal milestone for investors tracking whether the capital raise proceeds beyond the board approval stage.

Trading window closure under SEBI PIT regulations

Rajasthan Tube also disclosed a trading window closure under Regulation 9 of the SEBI (Prohibition of Insider Trading) Regulations, 2015. The trading window was closed from July 20, 2026. It will remain closed until 48 hours after the declaration of the board meeting outcome.

The restriction applies to connected persons, officers, designated employees, insiders, directors, and their immediate relatives. Such closures are commonly used around price-sensitive events such as fundraising proposals and board decisions, to manage insider trading compliance.

Financial and operating context: halted operations and zero revenue

The preferential issue is being considered at a time when Rajasthan Tube has disclosed operational stress. The company’s operations are halted, and it reported ₹0 crore revenue in the latest quarter. For the March 2026 quarter, sales were ₹0 crore and the net loss was ₹1 crore.

The company’s market capitalisation was cited at ₹63 crore in the provided text, highlighting its nano-cap status. With no sales reported and operations halted, the fundraise is positioned as a potential source of capital for working needs or for a possible operational restart. At the same time, the disclosures also emphasise that the fundraise should not be treated as completed until all approvals are in place.

Prior precedent: 2025 preferential allotment of warrants

Rajasthan Tube has previously executed a preferential allotment of convertible warrants. In a disclosure referenced in the provided text, the board on September 05, 2025 approved the allotment of 15,00,000 convertible warrants at an issue price of ₹101 per warrant. The company reported receiving ₹3.7875 crore as warrant subscription money, calculated at ₹25.25 per warrant, which was stated as 25% of the issue price.

The earlier transaction is relevant because it establishes that the company has used the warrant route before, and it provides a historical reference point on pricing and funding structure. Still, the current proposal has a materially different price point at ₹15 per warrant, reflecting the terms disclosed for the 2026 issuance.

Corporate and market snapshots mentioned in disclosures

The provided text also notes governance and corporate events around the company. It states that promoters sold shares and lost control earlier in FY26. It also lists that Rajasthan Tube Manufacturing appointed Pankaj Joshi as Chief Financial Officer on February 26, 2026, and references a “Promoter Stake Sale” dated June 10, 2026.

Separately, the text references a stock split decision from a board meeting held on February 17, 2025, stating that equity shares of face value ₹10 each were split into 10 equity shares of face value ₹1 each. The same note also mentions an increase in authorised share capital from ₹8 crore to ₹58 crore.

On the market side, the text mentions the stock last traded at ₹14.00 and had moved up 0.21% from its previous close of ₹13.97.

Key facts table

Preferential issue comparison: 2025 vs 2026 (as disclosed)

What investors will track next

The immediate next step is the shareholder vote at the EGM scheduled for August 20, 2026. Until then, the preferential issue remains subject to shareholder approval and other applicable regulatory clearances. Investors will also watch for the formal outcome disclosures after the board meeting, especially since the trading window closure is linked to the timing of that declaration.

For a company that has reported ₹0 crore revenue and a quarterly net loss of ₹1 crore while operations are halted, the proposed ₹93.15 crore warrant issuance is a significant capital action relative to its cited market cap of ₹63 crore. The next concrete updates are expected through company filings around the EGM process and any subsequent allotment-related disclosures.