Raymond preferential issue: Rs 331 cr warrants in 2026

What Raymond’s board approved on May 25, 2026

Raymond Limited has approved a preferential issue of convertible warrants worth Rs 330.88 crore to a promoter group entity, JK Investors (Bombay) Limited. The decision was taken at a Board of Directors meeting held on May 25, 2026, according to the company’s disclosure to stock exchanges.

The company plans to issue up to 66,57,373 convertible warrants on a preferential basis. Each warrant carries the right to subscribe to one fully paid-up equity share of Raymond with a face value of Rs 10 per share.

This fundraising proposal is subject to approval by the company’s members and other statutory and regulatory clearances. The company has also outlined a strict conversion window and consequences if the warrants are not converted within the permitted period.

Key terms: number of warrants, price, and premium

Raymond said the warrants will be issued at Rs 497 per warrant, which includes a premium of Rs 487 per warrant. Based on the approved size of up to 66,57,373 warrants, the total amount to be raised aggregates to about Rs 330.88 crore.

Preferential issues of warrants are typically structured to allow capital infusion with a later equity conversion. In this case, Raymond has clearly specified that each warrant converts into one equity share, aligning the potential equity issuance directly with the number of warrants allotted.

The company’s filing also clarifies the fully diluted impact on the allottee’s shareholding if all warrants are converted.

Conversion window and lapse conditions

The warrants can be converted into equity shares in one or more tranches within 18 months from the date of allotment. This gives the allottee flexibility to time the conversion, while still being bound by the outer time limit.

Raymond stated that any unconverted warrants after the expiry of the 18-month period will lapse. It also said that the amount paid by the warrant holder for such unconverted warrants will stand forfeited.

These terms put a clear deadline on conversion and make the cost of non-conversion explicit.

Who gets the allotment: JK Investors (Bombay) Limited

The allottee in this transaction is JK Investors (Bombay) Limited, which the company identified as a promoter group entity. Because the warrants are being issued to a promoter group entity, the proposal’s governance path includes shareholder approval and other regulatory clearances.

Raymond’s disclosure positions the move as a capital infusion aimed at strengthening the company’s capital structure, with the conversion option available over an 18-month period.

How promoter shareholding changes on full conversion

Raymond disclosed the pre-issue and post-issue shareholding of JK Investors (Bombay) Limited on a fully diluted basis, assuming full conversion of the warrants.

Before the preferential issue, JK Investors (Bombay) Limited held 1,98,61,793 equity shares, representing a 29.83% stake in Raymond. After full conversion, its shareholding is expected to increase to 2,65,19,166 equity shares, representing 36.21% on a fully diluted basis.

This indicates a meaningful increase in the promoter group entity’s ownership percentage if the entire warrant allotment converts into equity.

Stock market reaction: Raymond shares end higher

On May 25, 2026, Raymond shares ended higher by 1.09% at Rs 558.90, following the company’s announcement of the preferential issue plan.

The market move came on the same day as the board decision, indicating that investors were actively tracking the fundraising and its potential impact on the company’s capital structure and promoter holding.

Snapshot table: issue details and shareholding impact

Financial context: FY26 profit and income numbers cited

Raymond also reported a 3% year-on-year increase in consolidated net profit to Rs 53 crore for FY26. Total income for FY26 rose 10% year-on-year to Rs 2,312 crore.

While the preferential warrant issue is a separate corporate action, these FY26 figures provide a current snapshot of earnings and income trends referenced alongside the fundraising update.

Other capital market activity: NCD allotment details mentioned

Separately, the company disclosed that a committee of directors approved the allotment of 400 secured listed rated redeemable non-convertible debentures (NCDs) of face value Rs 0.10 crore each, at par. This totals Rs 40 crore in face value.

The NCDs carry a coupon rate of 8.85%. Raymond said the debentures are proposed to be listed on the Wholesale Debt Market segment of the National Stock Exchange of India Ltd.

Market impact and what investors will watch next

The preferential issue is set to increase JK Investors (Bombay) Limited’s stake from 29.83% to 36.21% on a fully diluted basis if all warrants are converted. For investors, the key monitorables include the timeline for shareholder approval, the date of allotment, and subsequent conversion disclosures over the 18-month window.

The pricing of Rs 497 per warrant is another focal point because it defines the implied conversion price for the equity shares issued through this route.

Raymond has also made the lapse and forfeiture terms explicit, which can influence whether and when the warrants are converted.

Conclusion

Raymond’s board-approved plan to raise Rs 330.88 crore through a preferential issue of 66,57,373 convertible warrants to JK Investors (Bombay) Limited sets up a potential step-up in promoter ownership if fully converted. The next milestones are shareholder approval, regulatory clearances, and the eventual allotment that starts the 18-month conversion clock.