Supreme Engineering warrant conversion could lift Chowdhri stake

Supreme Engineering Limited said its November 10, 2026 allotment of 14.50 crore convertible warrants could lift managing director Sanjay Chowdhri’s indicated holding to 26.87% from 22.64% if all warrants are converted and the other assumptions in its post-preferential holding table are met. Chowdhri received 7 crore warrants at Rs 2.60 each.

How could Sanjay Chowdhri’s stake in Supreme Engineering change?

Sanjay Chowdhri’s indicated holding in Supreme Engineering would rise by 4.23 percentage points to 26.87% from 22.64% under the assumptions disclosed for the post-preferential shareholding table. The filing records his pre-preferential holding at 5,65,93,000 shares and its conditional post-preferential figure at 18,15,93,000 shares.

The 26.87% figure is not a report that shares have already been issued on conversion. Supreme Engineering said each warrant converts into one fully paid equity share, while the table states that its post-preferential figures assume both completion of the preferential allotment of equity shares to proposed allottees and conversion of all warrants. Chowdhri signed the November 10 disclosure as managing director.

What warrants did Supreme Engineering allot on November 10, 2026?

Supreme Engineering allotted 14.50 crore fully convertible warrants on November 10, 2026 at Rs 2.60 per warrant, giving the preferential issue an aggregate subscription amount of Rs 37.70 crore. The warrants were issued for cash consideration on a private-placement basis to seven promoter and non-promoter category investors.

Each warrant can be converted into one fully paid equity share with a face value of Rs 1, at the Rs 2.60 warrant issue price. The issue price includes a premium of Rs 1.60 per resulting share, and any amount paid against a warrant will be adjusted against the issue price when the resulting equity share is issued.

The allotment followed board meetings on September 1, 2026 and September 24, 2026, a shareholder special resolution at the October 1, 2026 annual general meeting, and the National Stock Exchange of India’s in-principle approval dated October 26, 2026. Supreme Engineering’s board then approved the allotment through a resolution dated November 10, 2026.

Chowdhri received 7 crore warrants, or 48.28% of the 14.50 crore total. Abhinav Chowdhri and Pranav Chowdhri each received 1.50 crore warrants, Hardik D. Parekh received 2 crore, Trina Vyas and Tanaisha Vyas each received 75 lakh, and Nikita Hardik Parekh received 1 crore.

How much cash has Supreme Engineering received from the warrant issue?

Supreme Engineering reported Rs 9.45 crore of subscription money received on the November 10, 2026 allotment date, compared with the Rs 37.70 crore aggregate subscription amount attached to all 14.50 crore warrants. The filing says a minimum of 25% of the warrant issue price was payable on subscription and allotment, with the remaining 75% payable on conversion.

Chowdhri paid Rs 4.55 crore upfront against an aggregate subscription amount of Rs 18.20 crore for his 7 crore warrants. Abhinav Chowdhri and Pranav Chowdhri each paid Rs 97.50 lakh against Rs 3.90 crore, while Hardik D. Parekh paid Rs 1.30 crore against Rs 5.20 crore.

Trina Vyas and Tanaisha Vyas each paid Rs 50 lakh on allotment against Rs 1.95 crore of aggregate subscription amount. Nikita Hardik Parekh paid Rs 65 lakh against Rs 2.60 crore, and these three payments together were Rs 1.65 crore. The disclosed individual payments add to the stated Rs 9.45 crore total received.

Which other investors could hold shares after full conversion?

Supreme Engineering’s conditional table shows all seven allottees with post-preferential holdings if the disclosed assumptions are fulfilled. Trina Vyas and Tanaisha Vyas, each shown with no pre-preferential shares, would each be shown with 75 lakh shares and a 1.11% holding, while Nikita Hardik Parekh would be shown with 1 crore shares and 1.48%.

Hardik D. Parekh’s indicated percentage would change from 0.02% to 2.97%, a 2.95-percentage-point increase. His reported share count would move from 54,201 to 2,00,54,201 under the table’s assumptions, alongside his 2 crore warrant allotment.

Abhinav Chowdhri’s indicated holding would change from 3.00% to 4.07%, while Pranav Chowdhri’s would change from 2.72% to 3.96%. The disclosure presents post-preferential totals of 2,75,00,000 shares for Abhinav Chowdhri and 2,68,00,000 shares for Pranav Chowdhri, but does not separately quantify the assumed preferential equity-share allotment referenced in the table note.

When can Supreme Engineering warrants be converted?

Supreme Engineering said warrant holders can seek conversion in one or more tranches within 18 months of the November 10, 2026 allotment date. Each conversion requires payment of the balance 75% of the Rs 2.60 warrant issue price, after which one warrant becomes one equity share.

The 18-month exercise period means the conditional 26.87% holding shown for Chowdhri is not an immediate effect of the warrant allotment. The disclosure does not provide dates or volumes for individual conversions within that period, so it does not establish when, or whether, any particular holder will exercise all of their warrants.

Supreme Engineering described the issuance as a preferential allotment under Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as well as applicable provisions of the Companies Act, 2013. It recorded “not applicable” against cancellation or termination of the issuance proposal in its November 10 annexure.

Conclusion

Supreme Engineering’s warrant allotment sets out a potential, rather than completed, shift in ownership. The 14.50 crore warrants carry an aggregate subscription amount of Rs 37.70 crore, and the company’s conditional table shows Chowdhri’s stake at 26.87%, up from 22.64%, if its stated assumptions, including full warrant conversion, are fulfilled.

The next item to watch is exercise of the warrants during the 18-month window from November 10, 2026. Any conversion would require payment of the remaining 75% consideration, and Supreme Engineering may disclose resulting equity issuances and revised shareholding as holders convert in one or more tranches.