Shlokka Dyes proposes Rs 24.50 crore preferential issue

Shlokka Dyes Limited has proposed raising up to Rs 24.50 crore through 39 lakh convertible warrants and 31 lakh equity shares priced at Rs 35 each, with shareholder approval scheduled for November 28, 2026. On the stated fully diluted assumption, Shlokka Dyes’ promoter holding would decline to 64.44% from 70.34%.

What has Shlokka Dyes proposed to issue?

Shlokka Dyes has proposed a preferential issue comprising 39 lakh warrants worth up to Rs 13.65 crore and 31 lakh equity shares worth up to Rs 10.85 crore. The board approved the proposals on November 3, 2026, subject to approvals from shareholders and applicable regulatory or statutory authorities.

The warrants and shares would both be issued at Rs 35 apiece, including a Rs 25 premium over the Rs 10 face value. Taken together, the proposals cover up to 70 lakh equity shares on a fully diluted basis, because each of the 39 lakh warrants carries the right to receive one fully paid-up Shlokka Dyes equity share.

The company said both tranches would be preferential issues under Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, or SEBI ICDR Regulations, and would be undertaken for cash consideration. The filing does not state a use of proceeds for the Rs 24.50 crore proposal.

Who would receive the warrants and equity shares?

Shlokka Dyes proposes to issue 32.5 lakh of the 39 lakh warrants to three promoter allottees and 6.5 lakh warrants to one public allottee. Vaibhav Pravinchandra Shah would receive 15 lakh warrants, Shivani S Rajpurohit 10 lakh, Pravinaben P Shah 7.5 lakh and public investor Tushar Sabhapati Mishra 6.5 lakh.

The proposed equity-share tranche would go to 23 public investors, totalling 31 lakh shares. The two largest proposed allocations are 3 lakh shares each to Anil Laxmandas Pursnani and Sunitaben Tulsidas Kriplani, while Pavan Khandelwal HUF is proposed to receive 2 lakh shares.

Of the 31 lakh public shares, nine allottees would receive 1.5 lakh shares each, eight would receive 1 lakh shares each, three would receive 50,000 shares each and two would receive 3 lakh shares each. This distribution, together with the 6.5 lakh public warrants, means the public category accounts for 37.5 lakh of the potential 70 lakh additional shares.

The proposed warrant allocations would not produce equity shares immediately. The 31 lakh equity-share allottees would receive shares if the issue is completed, while the 39 lakh warrant holders would receive shares only upon exercising their conversion options within the specified tenure.

How would the proposed issue change Shlokka Dyes shareholding?

Shlokka Dyes’ stated fully diluted shareholding pattern shows total shares increasing to 2.84 crore from 2.14 crore, an addition of 70 lakh shares. The promoter category would rise in absolute shares to 1.83 crore from 1.51 crore because of promoter warrants, but its percentage holding would fall by 5.90 percentage points to 64.44% from 70.34%.

The public category would increase to 35.56% from 29.66%, a rise of 5.90 percentage points, under the same fully diluted calculation. Public shares would rise by 37.5 lakh, compared with a 32.5 lakh increase for the promoter category, reflecting the 31 lakh public equity shares and 6.5 lakh public warrants.

This ownership outcome is conditional rather than final. Shlokka Dyes stated that its post-issue table assumes every proposed allottee subscribes and that all subscribed warrants are converted; the actual pattern would change if securities are not subscribed, allotted or converted.

When can the warrants convert and what approvals remain?

Shlokka Dyes’ 39 lakh warrants would be convertible into an equivalent number of equity shares at the holders’ option within 18 months from allotment. Warrant holders must pay at least 25% of the issue price when applying, with the remaining 75% payable upon exercise and allotment of the corresponding equity shares.

At the Rs 35 issue price, the initial payment condition is Rs 8.75 per warrant and the balance on conversion is Rs 26.25 per warrant. The company described the warrant price as determined under the SEBI ICDR Regulations and said the number of shares issued on exercise could be adjusted as permitted by applicable laws and regulations.

The board has called the first extraordinary general meeting of financial year 2026-27 for November 28, 2026 at 3:30 p.m. Indian Standard Time through video conferencing or other audio-visual means. The meeting will seek member approval for the proposed issuances and for raising authorised share capital.

Shlokka Dyes also proposes increasing authorised share capital to Rs 29 crore, divided into 2.90 crore equity shares of Rs 10 each, from Rs 22 crore divided into 2.20 crore shares. The proposed Rs 7 crore increase in authorised capital, and the corresponding amendment to Clause V of the memorandum of association, remain subject to shareholder approval.

Conclusion

The November 3, 2026 board decisions set out a potential Rs 24.50 crore cash fundraise at Rs 35 per security, split between Rs 13.65 crore of warrants and Rs 10.85 crore of immediate equity shares. If the full proposal is subscribed and every warrant converts, Shlokka Dyes would have 2.84 crore shares outstanding and promoter ownership would be 64.44%.

The next disclosed event is the November 28, 2026 extraordinary general meeting, where shareholders will vote on the preferential issues and the proposed increase in authorised share capital from Rs 22 crore to Rs 29 crore. After any allotment, the key unresolved matter is the pace of warrant conversion, since holders have up to 18 months from allotment to exercise the 39 lakh warrants.