Shreeji Global FMCG plans Rs 40.74218 crore warrant raise

Shreeji Global FMCG Limited proposes to raise up to Rs 40.74218 crore through 22,02,280 preferential convertible warrants at Rs 185 each, subject to shareholder approval, and plans to allocate Rs 32.593744 crore of the maximum proceeds to working-capital requirements. The balance of Rs 8.148436 crore is earmarked for general corporate purposes.

How will Shreeji Global FMCG use the proposed Rs 40.74218 crore?

Shreeji Global FMCG intends to deploy Rs 32.593744 crore, or 80% of the proposed maximum proceeds, for working-capital requirements and Rs 8.148436 crore for general corporate purposes. Its board approved the proposal on October 27, 2026, with the preferential issue remaining subject to members’ approval and other required approvals.

Management has set a tentative utilisation timeline of 12 months from the receipt of warrant funds for both stated uses. The company said the proceeds will arrive in tranches because the instruments are convertible warrants, and that the entire issue proceeds may be received within 18 months of warrant allotment under the Securities and Exchange Board of India (SEBI) Issue of Capital and Disclosure Requirements regulations.

Management stated that the objects and utilisation timetable are estimates based on commercial, technical and market conditions. If funds are not immediately deployed, Shreeji Global FMCG said it will temporarily place them in safe and liquid instruments, including deposits with scheduled commercial banks, until they are used for the approved objects.

The company also said unutilised money may be carried forward into subsequent periods, but only for the approved purposes and in line with applicable rules. Any variation or rescheduling of deployment would be undertaken by the board according to business requirements, management said.

What are Shreeji Global FMCG’s warrant price and conversion terms?

Shreeji Global FMCG proposes to issue up to 22,02,280 warrants for cash at Rs 185 per warrant, comprising a Rs 10 face value and Rs 175 securities premium. Each warrant may be converted into one equity share, with holders able to exercise that option within 18 months from warrant allotment.

The Rs 185 issue price is above the disclosed Rs 180.92 regulatory floor price and the Rs 182.40 per-share value determined by registered valuer Procurve Valux Private Limited on October 27, 2026. The valuation was required because the proposed issue exceeds 5% of the post-issue fully diluted share capital.

The floor price reflects the higher of the 90-trading-day and 10-trading-day volume-weighted average prices, or VWAPs, on the National Stock Exchange of India Limited before the October 27, 2026 relevant date. Shreeji Global FMCG said the issue price was determined on a pre-bonus basis.

Separately, Shreeji Global FMCG has proposed a one-for-one bonus issue. If approved and if warrants are converted, each converted equity share would be eligible for one bonus equity share, and the company would reserve Rs 2.20228 crore for up to 22,02,280 such bonus shares. Warrant holders will not receive bonus shares unless their warrants are converted into equity shares.

Who will receive Shreeji Global FMCG warrants and how could ownership change?

Shreeji Global FMCG has identified 17 proposed allottees, including five promoter or promoter-group members and 12 non-promoters, and states that the transaction will not change management or control. The promoter and promoter-group subscribers are Jitendra Tulshidas Kakkad, Vivek Tulshidas Kakkad, Kakkad Tulshidas Mohanlal, Bansi Vivek Kakkad and Kakkad Shushilaben Tulshidas.

Those five promoter and promoter-group subscribers are proposed to receive 15,02,280 of the 22,02,280 warrants. Kakkad Shushilaben Tulshidas is slated to receive 5,00,720 warrants, while Bansi Vivek Kakkad and Kakkad Tulshidas Mohanlal are proposed to receive 3,00,720 and 3,00,000 warrants, respectively.

On the assumption that all warrants are converted, Shreeji Global FMCG’s equity share count would rise to 2,49,62,280 from 2,27,60,000 before the proposed bonus issue. Promoter and promoter-group ownership would move to 69.95% from 70.12%, while public ownership would rise to 30.05% from 29.88%.

The disclosed post-issue pattern assumes that every proposed allottee subscribes to and converts all 22,02,280 warrants, while all other holdings remain unchanged. If any warrant is not subscribed to or is not converted within the 18-month exercise period, the final shareholding pattern would differ; a subsequently approved one-for-one bonus issue would double share numbers without changing the stated ownership percentages.

What approvals, lock-ins and allotment deadlines apply to Shreeji Global FMCG’s issue?

Shreeji Global FMCG requires members to pass a special resolution before it can make the preferential issue, and it must allot the warrants within 15 days of that resolution unless a regulatory approval remains pending. If an approval is pending, the 15-day period runs from receipt of the last required approval or permission.

After a warrant holder exercises the conversion option, Shreeji Global FMCG said it will allot the resulting equity shares within 15 days. The converted shares will rank equally with existing equity shares, including for dividend, voting and other entitlements, and the company will apply for their listing and trading approval.

Shares issued on warrant conversion will be subject to lock-in requirements under SEBI regulations, with an additional lock-in possible if mutually agreed by the company and the proposed allottees. The filing also says the allottees’ pre-preferential holdings will be locked in from the relevant date until 90 trading days after allotment, as applicable to unlisted convertible securities or warrants.

Shreeji Global FMCG said no preferential allotment was made to any person during the year and that proposed allottees had not sold its equity shares during the 90 trading days before October 27, 2026. It also stated that the issue does not trigger a public offer requirement and that public shareholding remains above the 25% minimum listing threshold.

Conclusion

The proposed preferential issue gives Shreeji Global FMCG a route to raise up to Rs 40.74218 crore, with Rs 32.593744 crore designated for working capital. At full conversion, 22,02,280 new equity shares would be created before the bonus issue, while promoter and promoter-group ownership would change from 70.12% to 69.95% and the company says control would remain unchanged.

The next events are the shareholder vote on the special resolution, any needed regulatory permissions and warrant allotment within the disclosed 15-day timetable. Investors will also need to watch conversion decisions during the 18-month exercise window and the separate proposed one-for-one bonus issue, which would double share counts after conversion if approved.