Simplex Castings raises Rs 6.25 crore, allots 1,63,809 warrants

Simplex Castings Ltd. raised Rs 6.25 crore through the preferential allotment of 5,94,901 fully paid equity shares on November 6, 2026, while also allotting 1,63,809 convertible warrants with a total issue value of Rs 1.72 crore. The warrant leg brought in Rs 42.99988 lakh upfront, with the balance dependent on conversion within 18 months.

What did Simplex Castings allot on November 6, 2026?

Simplex Castings allotted 5,94,901 fully paid equity shares and 1,63,809 fully convertible equity warrants on a preferential basis through a board circular resolution dated November 6, 2026. The equity shares were issued for cash to non-promoter investors, while the warrants were also allotted to non-promoters.

The equity-share leg aggregated to Rs 6.25 crore, based on an issue price of Rs 105 per share. The warrant leg had a stated aggregate value of Rs 1.72 crore at the same Rs 105 issue price, but the company reported only Rs 42.99988 lakh, or 25% of that consideration, as upfront payment.

The preferential issue was made under Chapter V of the Securities and Exchange Board of India (SEBI) Issue of Capital and Disclosure Requirements Regulations, 2018, the Companies Act, 2013 and other applicable laws. The company disclosed the allotment under Regulation 30 and Schedule III of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

How do Simplex Castings shares differ from its warrants?

Simplex Castings issued the 5,94,901 equity shares as fully paid securities, whereas each of the 1,63,809 warrants gives its holder the option to receive one fully paid equity share later. Both instruments carry the same Rs 105 issue price, comprising Rs 2 face value and Rs 103 premium per security.

The difference is the timing of payment and equity issuance. The share subscribers paid the full Rs 6.25 crore in cash at allotment, while warrant holders paid 25% upfront and must pay the remaining 75% when they elect to convert within 18 months of November 6, 2026.

Simplex Castings said the warrant allotment did not change its paid-up equity share capital, shareholding pattern or control at the time of allotment. That differs from the share issue, under which 5,94,901 equity shares were immediately allotted; a warrant creates equity shares only when the holder exercises the conversion right.

The filing permits warrant holders to convert in one or more tranches before the 18-month deadline. It also states that the number of shares issued on conversion will be subject to adjustments permitted under applicable rules, regulations and laws.

Which investors received Simplex Castings equity shares?

Simplex Castings allotted the 5,94,901 equity shares among nine non-promoter investors, with Apurva Narendraku Mar Parekh receiving the largest allocation of 1,54,285 shares. Resonance Opportunities Fund received 96,428 shares, while Vishal Gupta received 95,238 shares at the Rs 105 issue price.

NAFA India Emerging Blue Chip Fund and Shah Amee D each received 77,142 shares. The other recipients were Venus Investments VCC-Venus Stellar Fund with 23,810 shares, Paresh Dineshlal Shah and Niraj Deepak Dalal with 20,000 shares each, Mili Emerging Equities Fund with 19,285 shares, and Snehal Sunny Shah with 11,571 shares.

The warrant allotment went to four named non-promoter investors. Venus Investments VCC-Venus Stellar Fund received 76,190 warrants, Chandni Gupta received 47,619, and Saurabh Gupta and Akshit Lakhotia received 20,000 warrants each, together accounting for all 1,63,809 warrants.

The largest equity allocation of 1,54,285 shares was higher than the largest warrant allocation of 76,190 warrants. The equity allottee list and warrant allottee list are therefore not identical, although Venus Investments VCC-Venus Stellar Fund appears in both legs of the preferential issue.

When can Simplex Castings warrants be converted?

Simplex Castings warrant holders may convert their warrants at any time before the expiry of 18 months from the November 6, 2026 allotment date. Each exercised warrant converts into, or is exchangeable for, one fully paid equity share of Rs 2 face value.

Holders can exercise the 1,63,809 warrants in one or more tranches, rather than converting the entire allotment at once. Conversion requires payment of the remaining 75% of the Rs 105 warrant price, after the initial aggregate receipt of Rs 42.99988 lakh representing the 25% upfront payment.

If a warrant holder does not exercise the conversion option within 18 months, the conversion entitlement will lapse. Simplex Castings said the upfront consideration paid by that holder will then be forfeited, making full receipt of the Rs 1.72 crore warrant issue value conditional on exercise.

The company stated that it will intimate the exchange when warrants are converted. Such disclosures would show whether any portion of the 1,63,809 conversion rights has become equity shares during the 18-month exercise period.

How is the Simplex Castings preferential issue priced?

Simplex Castings priced both the equity shares and warrants at Rs 105 apiece, including a Rs 103 premium over the Rs 2 face value. The identical pricing means the 5,94,901 immediately allotted shares and the potential 1,63,809 warrant-conversion shares have the same stated per-security value.

At the disclosed price, the equity portion raised Rs 6.25 crore immediately, compared with a Rs 1.72 crore total value for the warrant portion. The reported upfront warrant receipt of Rs 42.99988 lakh is lower because it represents only the mandatory 25% initial payment, not the full warrant consideration.

Across both legs, the issue covers 7,58,710 securities if all 1,63,809 warrants are ultimately converted. Of that total, 5,94,901 were already equity shares on November 6, 2026, while the warrant-linked 1,63,809 shares remain dependent on holder action and payment of the balance amount.

The disclosure identifies all recipients as non-promoters. It does not provide a post-conversion shareholding calculation, and it specifically says the warrant allotment itself caused no change in paid-up capital, shareholding pattern or control.

Conclusion

Simplex Castings combined Rs 6.25 crore of immediately paid equity funding with a warrant issue valued at Rs 1.72 crore, of which Rs 42.99988 lakh was received upfront. The structure issued 5,94,901 equity shares at once and created conversion rights for another 1,63,809 shares at the same Rs 105 price.

The next disclosed event to watch is any conversion notice during the 18 months from November 6, 2026. Warrant holders must pay the remaining 75% to receive shares, while unexercised warrants will lapse after that period and their upfront consideration will be forfeited.