Rajasthan Tube to Raise ₹93 Cr via Warrants in 2026

Overview: Board clears preferential warrant issue

Rajasthan Tube Manufacturing Company Ltd. (RAJTUBE) has approved a plan to raise up to ₹93.15 crore through a preferential issue of convertible warrants. The board cleared the issuance of 6.21 crore warrants at ₹15 per warrant to a group of 53 investors. The proposal is still subject to shareholder approval. The company has scheduled an Extraordinary General Meeting (EGM) for August 20, 2026 to seek that approval. The development is being tracked closely because the company has disclosed that its operations are currently halted. In its latest quarter, Rajasthan Tube reported ₹0 revenue and a net loss, according to the disclosure summary referenced in the provided text. Against that backdrop, the proposed capital raising is one of the few concrete corporate actions that could influence the company’s near-term direction.

What the company approved on July 24, 2026

The board approval covers a fundraise of up to ₹93.15 crore via convertible warrants on a preferential basis. The pricing disclosed is ₹15 per warrant. The number of warrants proposed is 6.21 crore, and the allotment is proposed to 53 investors. The company has positioned the proposal as a preferential issue route, which typically requires shareholder consent and adherence to applicable SEBI and exchange rules. The board’s approval is an internal corporate step and not the final completion of fundraising. The issuance remains contingent on shareholders approving the resolution at the EGM. Any allotment would also remain subject to the usual regulatory processes and filings.

From proposal to details: what changed from earlier disclosures

Before the July 24 approval, the company had indicated it would consider raising funds through a preferential issue. In that earlier communication, Rajasthan Tube said the board would evaluate issuing equity shares, convertible warrants, or other instruments on a private placement basis. At that stage, the company had not disclosed the issue size, pricing, or the names and categories of proposed allottees. It had also not clarified whether promoters would participate or whether the issuance would be entirely non-promoter capital. The latest update adds concrete parameters including the size (6.21 crore warrants), the price (₹15 per warrant), and the count of intended investors (53). Even with those details, the company has still framed the transaction as subject to shareholder approval.

EGM on August 20: the next formal checkpoint

Rajasthan Tube has scheduled an EGM for August 20, 2026 to seek shareholder nod for the preferential issue of warrants. This is a critical step because preferential allotments require shareholder approval under Indian corporate and securities regulations. The company had earlier noted that the board would also consider fixing the date, time, and venue for the EGM and approving the notice. With the EGM date now specified, the process has moved into the shareholder approval phase. Until the EGM resolution is passed, the fundraise remains proposed rather than completed. The outcome of shareholder voting will determine whether the company can proceed with allotment.

Operations halted and ₹0 revenue: why the fundraise stands out

The disclosures referenced in the provided text point to a company currently without operating revenue. Rajasthan Tube reported ₹0 revenue in the latest quarter and posted a net loss in that period. The company has also stated that operations are halted. In practical terms, this makes access to capital more consequential because a restart, working capital needs, or balance-sheet stabilisation typically require funding. The company has not disclosed a specific use of proceeds in the provided text. Still, the timing of a preferential issue process during a phase of halted operations puts the spotlight on whether the infusion is aimed at operational restart, debt servicing, or broader corporate restructuring steps.

Trading window closure under SEBI insider trading rules

Rajasthan Tube disclosed closure of its trading window under Regulation 9 of the SEBI (Prohibition of Insider Trading) Regulations, 2015. The trading window is 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, as stated in the disclosure summary. Trading window closures are common around price-sensitive corporate actions such as fundraising decisions. The disclosure provides a defined window of restriction linked to the board meeting outcome announcement.

Key facts at a glance

Looking back: prior warrant allotment and corporate actions

Rajasthan Tube has previously executed a preferential allotment of convertible warrants. As 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 is 25% of the issue price. Each warrant was stated to be convertible into or exchangeable for one fully paid-up equity share of face value ₹10, subject to payment of the balance consideration of ₹75.75 at the time of allotment of equity shares. Separately, at a meeting held on February 17, 2025, the board approved a stock split of equity shares from face value ₹10 each into 10 equity shares of face value ₹1 each. The same meeting also approved an increase in authorised share capital from ₹8 crore to ₹58 crore.

Market context: nano-cap status, price reference, and governance signals

The provided text describes Rajasthan Tube as a nano-cap steel maker with a market capitalisation of ₹63 crore. It also references a current price of ₹41.49, down 0.48% over the past 24 hours, as per the information included. The narrative also notes that promoters sold shares and lost control earlier in FY26. While the details of those transactions are not provided in the text, the reference indicates changes in control dynamics and shareholding. In small-cap and nano-cap companies, preferential allotments can materially alter ownership and capital structure depending on allocation and conversion. However, the only confirmed transaction details in the provided text are the warrant count, price, total amount, and investor count, along with the EGM schedule.

Why this matters: what investors will track next

For investors, the immediate next step is the August 20 EGM outcome, since shareholder approval is required for the preferential warrant issue to proceed. Market participants will also watch for any further disclosures on the identity and category of allottees, promoter participation, and detailed terms of conversion if provided in subsequent filings. Given the company’s disclosed status of halted operations and ₹0 revenue in the latest quarter, clarity on funding use and operational plans would be central to assessing implications. Separately, the company has had recent leadership movement, including the appointment of Pankaj Joshi as Chief Financial Officer on June 10, 2026, as referenced in the text. Any additional updates after the board decision and EGM process will determine how the capital raising translates into action.

Conclusion

Rajasthan Tube Manufacturing’s board has approved raising up to ₹93.15 crore through 6.21 crore convertible warrants priced at ₹15 each, to be issued to 53 investors on a preferential basis. The plan now moves to shareholder approval at the EGM scheduled for August 20, 2026. With operations halted and ₹0 revenue reported in the latest quarter, the EGM outcome and subsequent disclosures will be the key confirmed milestones to watch.