Shree Pushkar Chemicals & Fertilisers Plans Rs 70 Crore Capex

Shree Pushkar Chemicals & Fertilisers Limited has approved a Rs 70 crore investment for a new 3,000 MTPA chemical plant at Ratnagiri Unit-5, with completion tentatively targeted by March 2028. The plan will be partly funded through a proposed Rs 45 crore preferential issue of convertible warrants to promoter and Chairman and Managing Director Punit Gopikishan Makharia.

Why is Shree Pushkar investing Rs 70 crore at Ratnagiri?

Shree Pushkar is proposing a new chemical plant at its Unit-5 facility in Ratnagiri with planned capacity of 3,000 metric tonnes per annum, or MTPA. The board approved the Rs 70 crore capital expenditure plan on 2 November 2026, placing the project within the company's stated chemical expansion programme.

The company has set a tentative completion target of March 2028 for the facility. The announcement does not specify the chemical products to be manufactured at the new plant, the phased spending schedule, or the expected revenue contribution after commissioning. Those details may be relevant for investors assessing the financial effect of the project.

The proposed expansion is larger than the fresh warrant proceeds alone. Shree Pushkar has said the project will be financed through a preferential issue to its promoter along with internal accruals, indicating that company-generated funds are intended to meet the remaining project cost.

What are the terms of the proposed promoter warrant issue?

Shree Pushkar plans to issue up to 854,060 fully convertible warrants to Punit Gopikishan Makharia on a preferential basis at Rs 526.90 per warrant. At the maximum proposed size, the issue would aggregate to Rs 45.0004214 crore, or about Rs 45 crore.

Each warrant will entitle the holder to subscribe to one fully paid-up equity share of face value Rs 10. The issue price of Rs 526.90 includes the warrant subscription price and the warrant exercise price, and the consideration is payable in cash under the stated terms.

The warrants will have a tenure of no more than 18 months from allotment. The investor can exercise the conversion right in one or more tranches during this period. If every warrant is exercised, Shree Pushkar would issue up to 854,060 new equity shares on a one-for-one basis.

What approvals does Shree Pushkar need before proceeding?

Shree Pushkar has scheduled an Extraordinary General Meeting, or EGM, on 2 December 2026 to seek shareholder approval for the proposed warrant issue and related actions. The board has also approved an increase in authorised share capital by 5 lakh shares as part of the announced proposals.

Shareholder approval is required before the preferential issue can be implemented on the disclosed terms. The EGM notice and the associated voting process will determine whether the company receives approval to proceed with the funding structure and capital-related changes.

The proposed warrants may increase the equity share count if they are exercised. The company has not provided a percentage dilution figure in the information supplied, so the eventual ownership effect cannot be calculated from the disclosed data alone. The actual number of shares issued will also depend on warrant exercise within the permitted 18-month period.

How does the new proposal relate to Shree Pushkar's earlier warrant funding?

Shree Pushkar separately reported that there was no deviation or variation in the use of Rs 29.99 crore raised through an earlier preferential issue of fully convertible warrants as of 30 September 2026. The company said those funds continued to be deployed in line with the objects approved at the EGM held on 10 December 2025.

This disclosure provides context for the latest proposal because the company is again using promoter-linked warrant funding for expansion. However, the earlier fund-utilisation statement concerns a previous preferential issue, while the proposed Rs 45 crore issue is linked to the newly announced Ratnagiri Unit-5 project.

The company had also disclosed a wider expansion plan involving additional fertiliser capacity by March 2028. The current announcement specifically identifies a 3,000 MTPA chemical plant at Unit-5 and a Rs 70 crore investment, which should be assessed on the terms presented for this project.

What does the proposal mean for investors and operations?

For investors, the key financial elements are the Rs 70 crore capital commitment, the proposed promoter funding of about Rs 45 crore, and the potential creation of up to 854,060 new shares following warrant conversion. No share-price movement, expected earnings impact, or project return estimate was disclosed in the announcement.

For operations, the project represents an intended addition of 3,000 MTPA of chemical capacity at Ratnagiri. The company has set March 2028 as the tentative completion date, leaving execution, spending and commissioning as the main operational milestones disclosed so far.

The promoter's proposed participation provides a defined funding source for part of the project, while internal accruals are expected to cover the balance. The proposal remains subject to shareholder approval at the December EGM and subsequent implementation under the stated warrant terms.

Conclusion

Shree Pushkar's proposed Rs 70 crore Ratnagiri investment combines a new 3,000 MTPA chemical facility with a promoter-backed funding plan. The Rs 45 crore warrant proposal can support part of the capital requirement, while internal accruals are intended to fund the remaining amount. Conversion of the warrants could add up to 854,060 equity shares.

The next disclosed event is the Extraordinary General Meeting on 2 December 2026, where shareholders will consider the warrant issue and related proposals. Investors can monitor the voting outcome, the allotment of any approved warrants, and progress towards the company's tentative March 2028 completion target for Unit-5.