GRM Overseas Limited approved conversion of 77.18 lakh warrants into equity shares and issued 1.54 crore bonus shares, taking total allotment to 2.31 crore shares. The company’s paid-up capital has increased to ₹41.44 crore following the preferential allotment and bonus issue.
Author: Aditya Pareek | EQMint
GRM Overseas Limited has announced a significant capital restructuring exercise after its Board of Directors approved the GRM Overseas warrant conversion and subsequent equity allotment during its meeting held on February 06, 2026. The move includes the conversion of outstanding warrants into equity shares and the issuance of additional shares under a previously approved bonus issue 2:1 shares, strengthening the company’s capital base and expanding shareholder participation.
The development was disclosed to both BSE Limited and National Stock Exchange of India Limited under Regulation 30 of SEBI Listing Regulations.
Details of the Warrant Conversion
The Board confirmed that out of the originally allotted 90.70 lakh convertible warrants, the company had earlier converted 13.52 lakh warrants into equity.
Now, the remaining 77.18 lakh warrants have been fully converted after receiving the balance subscription amount of:
₹86.82 crore (₹112.50 per warrant – 75% of issue price)
Each warrant was issued at:
- Issue Price: ₹150
- Subscription (25% upfront): ₹37.50
- Conversion (75%): ₹112.50
Following this payment, the company proceeded with the preferential allotment shares, issuing:
77.18 lakh equity shares
(face value ₹2 each)
This marks the completion of the entire warrant cycle with no outstanding warrants remaining.
Bonus Issue Adds 1.54 Crore Shares
In addition to the warrant conversion, GRM Overseas implemented its earlier approved bonus issue 2:1 shares, where shareholders receive:
2 new shares for every 1 existing share
Under this corporate action, the company allotted:
1,54,36,000 additional equity shares
This bonus allotment significantly increases free-float shares and improves liquidity for investors.
Total Shares Allotted
Combining both actions:
| Component | Shares |
|---|---|
| Warrant conversion | 77,18,000 |
| Bonus shares | 1,54,36,000 |
| Total | 2,31,54,000 shares |
This large-scale GRM Overseas equity allotment represents a substantial capital expansion.
Paid-Up Capital Increase
Following the allotment, the company’s paid-up capital increase GRM Overseas stood out as a key highlight.
Before allotment
₹36.81 crore
18,40,56,000 shares
After allotment
₹41.44 crore
20,72,10,000 shares
All newly issued shares rank pari-passu with existing equity shares, ensuring equal rights for all shareholders.
Investor Participation
The warrant conversion involved 21 investors, including:
- Promoters
- Institutional investors
- Private equity participants
- Non-promoter shareholders
The structured conversion shows continued investor confidence and participation in the company’s long-term growth.
Regulatory and Structural Framework
The company clarified that the issuance complies with:
- SEBI (ICDR) Regulations, 2018
- SEBI Listing Obligations and Disclosure Requirements
- Preferential allotment norms
Additionally, the tenure rules for warrants were outlined:
- Maximum tenure: 18 months
- 25% upfront payment
- Balance payable on conversion
- Non-exercised warrants subject to forfeiture
With the full conversion completed, there are no pending or lapsed warrants.
Strategic Significance for GRM Overseas
This capital action supports several strategic objectives:
Strengthened Balance Sheet
Fresh funds improve liquidity and operational flexibility.
Higher Trading Liquidity
Bonus shares increase market participation and affordability.
Expanded Shareholder Base
Broader ownership improves price discovery and stock depth.
Growth Readiness
Additional capital enables expansion, branding, and working capital needs.
Market Implications
For investors, the GRM Overseas warrant conversion and preferential allotment shares signal:
- Strong promoter commitment
- Institutional backing
- Confidence in future performance
- Enhanced share liquidity
Bonus issues often improve retail participation, while warrant conversions demonstrate long-term investor alignment.
Conclusion
The latest GRM Overseas equity allotment marks a decisive step in strengthening the company’s capital structure. With the conversion of 77.18 lakh warrants, issuance of 1.54 crore bonus shares, and a paid-up capital increase to ₹41.44 crore, GRM Overseas has significantly enhanced its financial foundation. The move reflects investor confidence, improved liquidity, and readiness for future growth initiatives, positioning the company strongly within India’s listed agri-food and rice manufacturing sector.
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Source link: BSE
Disclaimer: This article is based on official stock exchange filings and company disclosures and is for informational purposes only. It does not constitute investment advice. Investors should consult certified financial advisors before making investment decisions.
