Simplex Castings gets BSE approval for 94.96 lakh securities

Simplex Castings Ltd. received BSE Limited’s in-principle approval on November 3, 2026, for 44.91 lakh equity shares and 50.05 lakh convertible warrants, together representing 94.96 lakh potential equity securities at a price of not less than Rs 105 per security. The approval does not itself approve listing.

What did BSE approve for Simplex Castings?

BSE approved in principle Simplex Castings’ proposed preferential issue of 44.91 lakh equity shares with a face value of Rs 2 each and 50.05 lakh warrants convertible into 50.05 lakh equity shares, also with a Rs 2 face value. BSE’s approval letter is referenced LOD/PREF/SS/FIP/1051/2026-27 and dated November 3, 2026.

The direct-share issue is proposed for non-promoters, while the warrant issue is proposed for promoters and non-promoters. BSE’s letter specifies a price of not less than Rs 105 for each equity share and each warrant, meaning the disclosed figure is a minimum price rather than a confirmed final allotment price.

The warrant component exceeds the direct equity-share component by 5.14 lakh securities, based on 50.05 lakh warrants against 44.91 lakh shares. Each warrant is convertible into one equity share, but the November 3, 2026 filing does not state a conversion date, conversion period, payment schedule or the number of warrants that will ultimately convert.

How do the shares differ from the warrants?

The 44.91 lakh equity shares are proposed to be issued directly, while the 50.05 lakh warrants can convert into an equal number of equity shares. This distinction means the share component would create equity on allotment, whereas the warrant component represents potential future equity if conversion occurs under the terms not disclosed in BSE’s letter.

Both instruments carry the same stated floor price of Rs 105 and the same Rs 2 face value per resulting equity share. The filing does not disclose the final issue price, names of proposed allottees, use of proceeds, post-issue share capital or post-issue ownership percentages for promoters and non-promoters.

The 94.96 lakh total combines the 44.91 lakh directly issued shares with the 50.05 lakh shares that could arise from full warrant conversion. It should therefore not be read as confirmation that all 94.96 lakh equity shares have been allotted or will necessarily be listed at the same time.

Does BSE’s approval mean the securities are listed?

No, BSE’s November 3, 2026 in-principle approval is not approval for listing the 44.91 lakh shares or the 50.05 lakh warrants. The exchange explicitly states that Simplex Castings must separately comply with the requirements for listing the securities after their allotment.

The approval was issued under Regulation 28(1) of the Securities and Exchange Board of India, or SEBI, Listing Obligations and Disclosure Requirements Regulations, 2015. BSE says the issue and allotment must comply with the Companies Act, 2013, the Securities Contracts (Regulation) Act, 1956, the SEBI Act, 1992, the Depositories Act, 1996 and Chapter V of the SEBI Issue of Capital and Disclosure Requirements Regulations, 2018.

Simplex Castings must also obtain statutory and other approvals required for the transaction. BSE retains the right to withdraw its in-principle approval if information provided is incomplete, incorrect, misleading or false, or if the proposal contravenes applicable exchange rules, regulations or guidelines.

The company’s November 3, 2026 disclosure records the receipt of exchange clearance, rather than completion of the preferential issue. The filing does not provide an allotment date or a listing date for either the 44.91 lakh equity shares or the 50.05 lakh convertible warrants.

What must Simplex Castings do before allotment?

Before allotment, Simplex Castings must strengthen internal controls to monitor trades in its shares by proposed allottees, as required in BSE’s November 3, 2026 letter. BSE says this is intended to avoid non-compliance with Chapter V of the SEBI Issue of Capital and Disclosure Requirements Regulations, 2018.

BSE has also advised Simplex Castings to obtain an undertaking from each allottee that the allottee will not carry out intraday trading in the company’s shares or sell its shares until the allotment date. The instruction relates to the proposed allottees associated with the 44.91 lakh direct shares and the 50.05 lakh warrant issue.

The exchange states that responsibility rests solely with the issuer to verify compliance, including under Regulation 167(6) of the 2018 SEBI regulations. BSE says non-compliance identified after the issuer’s verification and undertaking may affect the listing of the shares.

For convertible securities, BSE notes that depositories will automatically release any excess lock-in on the pre-preferential holdings of allottees in line with the 2018 regulations, without a no-objection certificate from the exchange. This process statement does not confirm that Simplex Castings has allotted any of the 50.05 lakh warrants.

When must Simplex Castings submit its listing application?

Simplex Castings must submit its listing application within 20 days from the allotment date, according to BSE’s November 3, 2026 letter. Since the filing does not state an allotment date, it does not establish a calendar deadline for the application.

BSE says the listing application should be made without delay with applicable fees and the documents required under its post-issue checklist. The exchange also requires compliance with post-issue formalities under Regulation 14 of the Listing Obligations and Disclosure Requirements Regulations.

A failure to apply within the stated 20-day period would attract the fine specified in SEBI circular SEBI/HO/CFD/PoD-2/P/CIR/2023/00094 dated June 21, 2023. The approval letter does not state the fine amount, so no monetary consequence can be calculated from the disclosure.

The disclosed sequence is compliance before allotment, allotment of the shares and warrants, an application within 20 days after allotment, and completion of listing formalities. The filing does not say when Simplex Castings expects to complete any of these steps.

Conclusion

Simplex Castings has obtained BSE’s in-principle clearance for a preferential issue comprising 44.91 lakh equity shares for non-promoters and 50.05 lakh convertible warrants for promoters and non-promoters. At a minimum price of Rs 105 per security, the approval advances the proposed issue but does not confirm allotment, warrant conversion or listing.

The next disclosed milestones are the company’s compliance checks before allotment and its listing application within 20 days after allotment. Investors will need a subsequent company disclosure to establish the allotment date, final issue price, allottee identities, warrant-conversion terms and completion of listing formalities.