Simplex Castings has Rs 5.72 crore conversion balance

Simplex Castings Limited has Rs 5.72 crore of warrant exercise consideration outstanding after allotting 7,26,809 preferential warrants on November 12, 2026, having received Rs 1.91 crore upfront from 13 non-promoter allottees. The balance is payable only if holders convert their warrants within 18 months.

What did Simplex Castings allot on November 12, 2026?

Simplex Castings allotted 7,26,809 warrants at Rs 105 each through a preferential issue, giving the instruments a maximum aggregate issue value of Rs 7.63 crore. The company’s board approved the allotment after members passed a special resolution at the October 15, 2026 extraordinary general meeting and BSE granted in-principle approval on November 3, 2026.

The 7,26,809 warrants were allotted to 13 investors, all in the non-promoter category. Each warrant can be converted into, or exchanged for, one fully paid equity share with a face value of Rs 2, but the warrant allotment did not change Simplex Castings’ share capital at the time of issue.

The Rs 105 warrant price comprises Rs 26.25 paid on subscription and Rs 78.75 due on exercise. This divides the consideration into 25% payable upfront and 75% payable only when an allottee elects to convert during the 18-month exercise period.

How much has Simplex Castings received from the warrants?

Simplex Castings received Rs 1.91 crore from the 13 warrant allottees, equal to Rs 26.25 per warrant and 25% of the Rs 7.63 crore maximum consideration. The payment was received at allotment for all 7,26,809 warrants disclosed in the November 12, 2026 announcement.

The remaining Rs 5.72 crore has not been received and is conditional on exercise of the conversion option. At Rs 78.75 per warrant, the unpaid amount represents 75% of the issue price and is three times the Rs 26.25 subscription amount collected per warrant.

This structure differs from the simultaneous preferential allotment of 10,53,312 equity shares, for which Simplex Castings received Rs 11.06 crore at Rs 105 per share from 18 non-promoter investors. Those shares were issued as fully paid equity and rank pari passu, or on equal footing, with existing shares, while warrant proceeds are split between subscription and any later exercise.

Who received Simplex Castings warrants?

Simplex Castings allotted the largest warrant block, 1,25,000 instruments, to Serene Alpha Capital Fund 1, followed by 1,05,000 warrants to Dipali Devang Sheth. Their respective upfront subscription amounts were Rs 32.81 lakh and Rs 27.56 lakh at the Rs 26.25 per-warrant subscription price.

Sneha Mantri, Gunina Realholdings LLP, Prachi Gaggar and Vinit Mukesh Mehta each received 70,000 warrants. Each 70,000-warrant allocation involved an upfront payment of Rs 18.38 lakh and would require a further Rs 55.13 lakh if converted in full at Rs 78.75 per warrant.

Shashikant Rathi received 23,809 warrants and also received 23,809 equity shares in the separate preferential share allotment. Laxmichand Kunverji Kenia received 60,000 warrants and 20,000 equity shares, while Serene Alpha Capital Fund 1 received 1,25,000 warrants and an equal number of equity shares across the two allotments.

When can Simplex Castings warrants become equity shares?

Simplex Castings warrant holders may exercise conversion within 18 months from the date of warrant allotment by paying the Rs 78.75 balance per warrant. If all 7,26,809 instruments are exercised, they would result in an equivalent number of fully paid equity shares with a Rs 2 face value each.

The company said the number of equity shares allotted on warrant exercise would be subject to adjustments permitted under applicable laws and regulations. It did not disclose a fixed conversion date because the decision to exercise remains with each allottee during the maximum 18-month period.

The warrants and the 10,53,312 preferentially allotted equity shares are subject to lock-in requirements under Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. The announcement did not state individual lock-in expiry dates for the 13 warrant allottees or the 18 equity-share allottees.

What happens if Simplex Castings warrants are not exercised?

Simplex Castings stated that unexercised warrants will lapse if holders do not exercise them within 18 months of allotment. The Rs 26.25 paid upfront for every warrant that lapses will be forfeited by the company under the disclosed terms.

If none of the 7,26,809 warrants is exercised, the Rs 1.91 crore already received would stand forfeited and the Rs 5.72 crore balance would not become payable. The Rs 7.63 crore maximum issue value is therefore not equivalent to funds received on the November 12, 2026 allotment date.

The announcement does not disclose an intended use for either the Rs 1.91 crore subscription proceeds or any future exercise proceeds. It describes the transaction as a preferential allotment made under the Securities and Exchange Board of India regulations and the Companies Act, 2013.

Conclusion

The November 12, 2026 allotment gave Simplex Castings Rs 1.91 crore in immediate subscription proceeds and created the possibility of a further Rs 5.72 crore. Compared with the concurrent Rs 11.06 crore fully paid equity allotment, the warrant issue has a different timing profile because most of its consideration depends on subsequent holder action.

The next disclosed milestone is the end of the 18-month exercise window from the warrant allotment date. Investors can watch for conversion disclosures because exercised warrants would lead to equity-share allotments, while instruments left unexercised would lapse and their upfront subscription amounts would be forfeited to Simplex Castings.