Supreme Engineering’s ₹110.75 Crore Funding Plan

Preferential issue receives regulatory clearance

Supreme Engineering Limited has received in-principle approval from the National Stock Exchange for a preferential issue of equity shares and convertible warrants worth up to ₹110.75 crore. The proposed fundraising involves equity shares and warrants priced at ₹2.60 each, including a premium of ₹1.60 over the ₹1 face value. The company is listed on the NSE under the symbol SUPREMEENG and operates in manufacturing and related engineering activities for industrial customers. The approval follows board decisions and shareholder approvals disclosed by the company during September and October 2026. The transaction represents a substantial proposed expansion of the company’s equity capital base.

Board approved issue on September 1

The board initially approved the preferential issue at its meeting on September 1, 2026. It proposed issuing up to 28.097 crore fully paid-up equity shares on a preferential basis to promoter and non-promoter category investors. The equity shares are proposed at ₹2.60 per share, comprising ₹1 face value and ₹1.60 securities premium. Based on the maximum number of shares, the equity component is expected to raise about ₹73.05 crore. The company said the price was not lower than the floor price determined under Chapter V of the SEBI Issue of Capital and Disclosure Requirements Regulations, 2018.

Convertible warrants form the second component

Along with the proposed equity shares, the board cleared issuance of up to 14.50 crore convertible warrants on a preferential basis. The warrants carry the same ₹2.60 price framework stated for the equity issue. The combination of the equity share issue and warrants results in a potential aggregate fundraising amount of about ₹110.75 crore. The warrant terms were not changed in the later modification to the equity allottee list. The proposed issue remains subject to applicable regulatory requirements and completion of the allotment process.

Allottee list changed after regulatory disqualification

On September 24, 2026, Supreme Engineering’s board approved changes to the list of proposed equity allottees. The company replaced 5.08 crore shares that had earlier been earmarked for nine proposed allottees. Those allottees were disqualified under Regulations 159 and 167 of SEBI’s ICDR Regulations, according to the company’s disclosure. Sixteen new investors replaced the earlier allottees, while the issue size, price and other terms remained unchanged. The revised list took the total number of investors participating in the preferential issue to 79.

Ashish Kacholia among replacement investors

The revised allottee list includes Ashish Kacholia, who is proposed to receive 3.20 crore equity shares. Other named new allottees include Gautam Udani with 45 lakh shares, Prashant Sanghvi with 25 lakh shares, and Farah Shapur Dilkhush with 25 lakh shares. Nikesh K Shah jointly with Falguni N Shah and Smriti Amar Hemrajani are proposed to receive 15 lakh shares each. Anand Loya is proposed to receive 12.50 lakh shares. These changes relate only to the proposed equity allotment and do not alter the disclosed convertible warrant terms.

Shareholders approved the proposals at AGM

Supreme Engineering held its 39th annual general meeting on October 1, 2026. The approved agenda included an increase in authorised share capital, the preferential equity issue, the warrant issue and the reappointment of the managing director. The company also stated on October 3 that shareholders had approved the preferential equity and warrant issue. A shareholder resolution is required for such an issue under Sections 23, 42 and 62(1)(c) of the Companies Act, 2013. The issue is structured as a private placement through preferential allotment.

Valuation clarification followed NSE observation

On October 16, 2026, the company issued a shareholder letter clarifying the valuation report connected with the preferential issue. The clarification followed an NSE observation dated October 14. The available disclosures do not indicate a change in the maximum issue size or the ₹2.60 issue price following that observation. The company’s filings state that all other particulars of the equity issue remained unchanged after the allottee modification. NSE in-principle approval is an important procedural step, but the completion of issuance depends on the company following the stated terms and regulatory conditions.

Key terms of the proposed fundraising

Earlier preferential issue remained unallotted

The current proposal follows an earlier preferential issue authorised in September 2024. That earlier proposal covered 19.03 crore shares at ₹2.48 per share. Supreme Engineering disclosed that the earlier authorised shares remained unallotted as of March 2026. The 2026 proposal is therefore distinct in its price, structure and proposed inclusion of convertible warrants. It also has a revised allottee list following the SEBI ICDR eligibility issue identified by the company.

What the issue means for investors

The proposed fundraising could materially increase the number of securities issued by Supreme Engineering if completed at the maximum approved levels. Equity shares are proposed for direct allotment, while warrants may lead to equity issuance on conversion under their applicable terms. Investors should distinguish between the ₹73.05 crore equity component and the ₹110.75 crore combined potential amount that includes warrants. The company has not disclosed a different issue price following shareholder approval or the NSE clearance. The relevant filings, allotment actions and future exchange disclosures will determine the final securities issued.

Regulatory framework remains central

The preferential issue is being undertaken under Chapter V of the SEBI ICDR Regulations and applicable provisions of the Companies Act. The replacement of disqualified allottees shows the relevance of investor eligibility requirements in preferential allotments. The company has said the issue price was determined in accordance with the SEBI ICDR framework. Its October shareholder communication on valuation also followed an exchange observation. These disclosures place the transaction within the standard sequence of board approval, shareholder approval, exchange review and eventual allotment.

Conclusion

Supreme Engineering’s proposed ₹110.75 crore preferential issue combines up to 28.097 crore equity shares and 14.50 crore convertible warrants at ₹2.60 each. Shareholders have approved the proposal, and the company has received NSE in-principle approval after revising part of its proposed allottee list. The next relevant disclosures will concern compliance with issue conditions and the final allotment of shares and warrants.