Active Clothing allots 20L convertible warrants at Rs. 115 for Rs. 23 Crore
FUNDRAISE
▲ Positive Development
MEDIUM RISK
📅 Filed on BSE: 18 Mar 2026, 02:06 PM IST · BSE ID: aa254c92-a6a0-47f8-827b-22d80a454e78
View Original BSE Filing (PDF)
💡
In Simple Terms
Active Clothing raised Rs. 23 Crore by issuing warrants convertible into equity shares, with Rs. 5.75 Crore collected upfront from six investors.
🤖 AI Summary
- Board approved allotment of 20,00,000 convertible warrants at Rs. 115 per warrant aggregating Rs. 23,00,00,000
- Company received Rs. 5,75,00,000 upfront payment (25% of issue price) from allottees
- Each warrant converts to one equity share at premium Rs. 105 within 18 months from allotment
- Six investors allotted: three promoters and three non-promoters in equal 10,00,000 warrant split
- Balance 75% consideration (Rs. 86.25 per warrant) payable by allottees upon conversion exercise
🔢 Key Numbers - exact figures from BSE filing, not rounded
Total warrant allotment
20,00,000 warrants
Warrant issue price
Rs. 115 per warrant
Total aggregate value
Rs. 23,00,00,000
Upfront cash received (25%)
Rs. 5,75,00,000
Balance consideration due (75%)
Rs. 86.25 per warrant
Warrant conversion period
18 months from allotment date
Conversion share face value
Rs. 10 per share
Conversion premium per share
Rs. 105 per share
Number of allottee investors
6 investors
🏢 How This Affects the Company
Capital infusion of Rs. 23,00,00,000 strengthens financial position for working capital, expansion, or debt servicing. Promoter participation (50% of warrants) signals confidence in company direction.
Company received Rs. 5,75,00,000 in cash upfront. On conversion of all 20,00,000 warrants, company will receive additional Rs. 17,25,00,000 (75% balance), totaling Rs. 23,00,00,000. Equity base expands by up to 20,00,000 shares upon full conversion.
Warrant conversion dilutes existing shareholder equity by up to 20,00,000 shares if exercise rate reaches 100%. Non-exercise risk exists — unexercised warrants lapse after 18 months, forfeiting allottee payments but creating no company liability.
👥 What This Means For Shareholders
✅
Action Required
No immediate action required. Monitor warrant exercise notices from allottees over next 18 months; verify post-conversion equity dilution in company results.
👤
Who Is Affected
All existing shareholders face potential dilution of 20,00,000 shares (up to conversion cap) upon full exercise. Promoter group (Rajesh, Renu, Kalika Mehra) receives 400,000 + 400,000 + 200,000 warrants respectively. Non-promoters receive 300,000 + 300,000 + 400,000 warrants respectively.
🔍
Management Signal
Promoter participation in 50% of warrant allotment indicates board confidence in company valuation and growth trajectory. Engagement of external non-promoter capital suggests management success in attracting third-party investors at premium pricing (Rs. 105 above face value).
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List - track these upcoming events
Warrant exercise notices from allottees — track conversion milestones monthly over 18-month tenure
Q4 FY26 and FY27 results — verify balance consideration receipts and equity dilution impact
Board announcement on conversion outcome — expected post-lapse date (September 2027) confirming exercised vs. lapsed warrants
MEDIUM RISK
Execution risk on 75% balance payment collection. Warrant lapse risk if allottees do not convert. Dilution of 20,00,000 shares on full conversion materially impacts EPS and ownership percentage.
💡 Investor Takeaway
Active Clothing raised Rs. 23,00,00,000 via 20,00,000 convertible warrants at Rs. 115 per warrant. Rs. 5,75,00,000 received upfront; balance Rs. 17,25,00,000 due upon conversion within 18 months. Promoters hold 50% allotment, non-promoters 50%, signaling balanced participation.
⚖️ Strengths & Concerns
✅ Positives
- Equal 50-50 split between promoter and non-promoter participation demonstrates external investor confidence and balanced capital structure
- Upfront cash receipt of Rs. 5,75,00,000 provides immediate liquidity without debt obligations or interest burden
⚠️ Concerns
- Warrant conversion within 18 months creates dilution risk of up to 20,00,000 shares if all allottees exercise conversion rights
- Balance 75% payment condition creates execution risk; if allottees do not pay Rs. 86.25 per warrant, conversion fails and capital does not materialize
📅 Company Track Record
Active Clothing Co Limited incorporated February 2002 (CIN: L51311PB2002PLC033422). Limited publicly available historical data. This preferential warrant issuance represents capital raise event with mixed promoter-non-promoter participation, signaling ongoing growth financing strategy.
Based on publicly available historical data. For context only.