Shivalik Rasayan approves ₹33 crore preferential issue

Key development and why it matters

Shivalik Rasayan Limited has approved a plan to raise up to ₹33 crore through a preferential allotment of equity shares and fully convertible warrants (FCWs). The Board of Directors cleared the proposal in a meeting held on July 23, 2026. The company said the capital raise is intended to strengthen its capital base for future growth initiatives. The structure mixes immediate equity issuance with an option-style instrument that can convert into equity later, which can change the company’s share capital over time. The proposal will now move to shareholders for approval through an Extra-Ordinary General Meeting (EGM).

What the board approved on July 23, 2026

The board approved the issuance of two instruments at the same issue price of ₹250 per unit. First, Shivalik Rasayan will issue up to 3,72,000 equity shares of face value ₹5 each. Second, it will issue up to 9,48,000 fully convertible warrants, also priced at ₹250 per warrant. The company disclosed that the pricing is in line with Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and relevant provisions of the Companies Act, 2013. The overall fundraising size, combining both components, is capped at ₹33 crore.

Break-up of the ₹33 crore: shares and warrants

The equity shares portion aggregates to ₹9.30 crore, calculated as 3,72,000 shares multiplied by ₹250 per share. The FCW portion totals ₹23.70 crore, based on 9,48,000 warrants multiplied by ₹250 per warrant. Together, these add up to ₹33.00 crore. The company indicated that the equity shares are being offered to public category investors, with the allocation distributed among five entities involving individual investors and joint holdings. For the warrants, the company disclosed that the allottees include both promoter group entities and public investors.

How the warrants work and the 18-month conversion window

The FCWs are convertible into an equivalent number of equity shares of face value ₹5 each. The company stated that warrant holders may convert in one or more tranches. The conversion period is up to 18 months from the date of allotment. This means the eventual increase in equity share count depends on when and how many warrants are converted within that timeframe. The structure also implies that part of the capital infusion can be staged, linked to conversion decisions by the warrant holders.

Shareholder approval: EGM scheduled for August 20, 2026

The preferential issue is not yet completed and remains subject to shareholder consent and applicable regulatory approvals. Shivalik Rasayan has scheduled an EGM for Thursday, August 20, 2026. The company said the meeting will seek shareholder approval for the preferential issue and connected matters. Only after the approvals and completion steps will the shares and warrants be allotted as proposed. The company has also constituted a Preferential Issue Committee to finalise documents required to complete the process.

Regulatory framework cited in the disclosure

The company said the announcement was made under Regulation 30 of the SEBI Listing Regulations, 2015. It also referenced the SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The pricing and issuance process were stated to be aligned with SEBI ICDR Regulations, 2018 (Chapter V), which governs preferential issues by listed companies. These references are relevant because preferential allotments must meet specific pricing, disclosure, and approval requirements. The company has positioned the process as compliant with those rules.

Snapshot table: instruments, pricing, amounts, key dates

Background: earlier conversions and preferential allotments

Shivalik Rasayan has previously used the preferential route and warrant conversions to raise capital. The company disclosed that on March 27, 2025, its board approved the allotment of 1,90,000 equity shares (face value ₹5 each) upon conversion of 1,90,000 warrants. Those warrants were issued on September 29, 2023, at an issue price of ₹716 per unit. Following that allotment, the company stated its paid-up equity share capital increased to ₹7,87,51,825, divided into 1,57,50,365 equity shares of face value ₹5 each. It also disclosed that it received funds for the warrant conversion and used that issuance to create a separate facility in its existing API plant at Dahej-II for manufacturing diabetology and cardiovascular APIs for the domestic market.

Company profile details included in the disclosure

The disclosure notes that SRL is the largest Indian producer of Dimethoate Technical and the second largest Indian producer of Malathion Technical. It also states that the company has been granted CEP for Busulfan, Clonidine HCl, Pirfenidone, and Temozolomide. In addition, it has submitted CEP applications for Ambroxol HCl and Pemetrexed Disodium Heptahydrate. These points provide context on the company’s product base and regulatory documentation progress.

Governance points: encumbrance disclosure and dividend reference

The company’s disclosure states that no shares were encumbered, directly or indirectly, during the financial year ended March 31, 2026. Separately, it also references the directors recommending a final dividend for FY 2024-25 at 10%, described as ₹0.50 per equity share (face value ₹5). While the dividend and encumbrance statements are not directly tied to the July 2026 fundraise approval, they are part of the information set provided in the text. For investors, the encumbrance statement is a governance-related disclosure that clarifies the status of pledged or otherwise encumbered shares for that period.

Market impact and what investors typically track next

A preferential issue can alter a company’s shareholding and capital structure, particularly when warrants can convert into equity over time. In Shivalik Rasayan’s case, the key near-term checkpoint is the August 20, 2026 EGM where shareholders will vote on the proposal. Post approval, investors generally monitor the final allotment, the identity and category of allottees (promoter group versus public), and the timeline for warrant conversions within the 18-month period. The company has already indicated the equity shares are proposed for public category investors, while warrant allottees include promoter group entities and public investors. The final dilution impact will depend on the eventual conversion of the 9,48,000 warrants.

Why this fundraising structure matters

The July 2026 plan blends immediate equity issuance with an instrument that is equity-linked but convertible later. This can provide the company flexibility in staging capital inflows while still keeping a defined ceiling for the total amount (₹33 crore). The board has also put in place a Preferential Issue Committee, signalling the next phase will focus on documentation and procedural completion. With the company citing SEBI ICDR and listing regulation provisions, the process will hinge on adherence to pricing and approval norms. The next material update is expected around the shareholder decision at the scheduled EGM.

Conclusion

Shivalik Rasayan’s board-approved preferential issue proposes ₹33 crore of fundraising through 3,72,000 equity shares and 9,48,000 convertible warrants priced at ₹250 each. Shareholder approval is scheduled to be sought at an EGM on August 20, 2026, and the company has formed a committee to complete the required documentation. If approved, the warrants can be converted in tranches within 18 months from allotment, shaping the eventual equity dilution. The company’s next disclosures are likely to focus on EGM outcomes, regulatory clearances, and the final allotment process.