Kati Patang Lifestyle Limited Converts 54.35 Lakh Warrants into Equity Shares

Kati Patang Lifestyle Limited has successfully completed the conversion of 54,35,000 warrants into equity shares on February 21, 2026, marking a significant milestone in the company's capital structure enhancement. The Board of Directors approved the allotment following the exercise of conversion rights by warrant holders, raising ₹4,07,62,500 through the process. Warrant Conversion Details The conversion involved 15 warrant holders across promoter and non-promoter categories, with each warrant converted into one equity share of face value ₹10. The exercise price was set at ₹7.50 per warrant, representing 75% of the total warrant price of ₹10 per warrant. Category: Number of Allottees Shares Allotted Amount Received (₹) Promoter Group: 3 15,30,000 1,14,75,000 Non-Promoter Group: 12 39,05,000 2,92,87,500 Total: 15 54,35,000 4,07,62,500 Major Allottees and Distribution Among the significant allottees, Alt Attitude Advisory LLP received the largest allocation of 18,60,000 equity shares for ₹1,39,50,000. Shantanu Upadhyay was allotted 8,50,000 shares for ₹63,75,000, while Samrath Bedi from the promoter group received 7,50,000 shares for ₹56,25,000. Allottee: Category Shares Allotted Amount (₹) Alt Attitude Advisory LLP: Non-Promoter 18,60,000 1,39,50,000 Shantanu Upadhyay: Non-Promoter 8,50,000 63,75,000 Samrath Bedi: Promoter Group 7,50,000 56,25,000 Gokul Naresh Tandan: Promoter 6,50,000 48,75,000 Sanjay K Jain: Non-Promoter 4,00,000 30,00,000 Impact on Share Capital The warrant conversion has substantially increased the company's equity base. Post-allotment, the fully paid-up equity share capital expanded from 3,58,98,280 shares to 4,13,33,280 shares. The newly allotted equity shares rank pari-passu with existing fully paid equity shares, including dividend rights. Warrant Issuance Background The warrants were originally issued on August 22, 2024, following EGM approval granted on July 25, 2024. The total warrant issuance comprised 69,10,000 warrants, of which 14,75,000 warrants were previously converted on March 28, 2025. With the current conversion of 54,35,000 warrants, all outstanding warrants have been fully exercised, with no warrants remaining for future conversion. Regulatory Compliance The allotment was conducted in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has fulfilled all disclosure requirements and made the information available on its website. The Board meeting was held on February 21, 2026, from 4:00 PM to 5:00 PM IST, with Company Secretary Sanjeev K Jha overseeing the regulatory compliance process. Kati Patang Lifestyle Limited has filed its quarterly monitoring agency report with BSE, providing detailed insights into the utilization of proceeds from its ₹20.51 crore rights issue for the quarter ended December 31, 2025. The report, prepared by monitoring agency Acuité Ratings & Research Limited, confirms systematic deployment of funds across the company's stated objectives without any material deviations. Rights Issue Overview The company successfully completed its rights issue during July 17, 2025 to August 01, 2025, raising gross proceeds of ₹20.51 crores. After deducting issue-related expenses of ₹0.40 crores, the net proceeds stood at ₹20.11 crores. Particulars Amount (₹ Crores) Gross Proceeds 20.51 Less: Issue Related Expenses 0.40 Net Proceeds 20.11 Fund Utilization Progress As of December 31, 2025, Kati Patang Lifestyle has utilized ₹8.979 crores from the raised funds across three primary objectives. The company deployed ₹3.345 crores during Q3FY26, bringing the cumulative utilization to ₹8.979 crores. Objective Allocated Amount (₹ Crores) Utilized Amount (₹ Crores) Q3FY26 Deployment (₹ Crores) Investment in Subsidiary ESPL 13.10 6.230 0.830 Acquisitions and Investments 5.01 2.118 2.118 General Corporate Purposes 2.00 0.631 0.397 Total 20.11 8.979 3.345 Strategic Investment Activities The company's largest deployment involved ₹6.230 crores invested in its subsidiary ESPL for working capital requirements, representing the primary focus area for fund utilization. During Q3FY26, an additional ₹0.830 crores was channeled toward this objective. In a significant strategic move, Kati Patang Lifestyle utilized ₹2.118 crores as an advance to increase its stake to 51% in CHADKP Holdings Ltd., a UK-based parent company of Chadlington Brewery and The Tite Inn in Oxfordshire, England. This investment aligns with the company's stated objective of funding unidentified acquisitions and investments. For general corporate purposes, the company deployed ₹0.631 crores, primarily covering legal compliances, salary payments, office expenses, and marketing-related expenditures. Unutilized Funds Management The company maintains ₹1.076 crores in unutilized proceeds, with ₹1.009 crores deployed in fixed deposits with HDFC Bank earning 5.25% returns and ₹0.067 crores available in current account. The fixed deposit, maturing on March 18, 2026, has generated ₹0.011 crores in earnings. Investment Type Amount (₹ Crores) Maturity Date Return Rate Earnings (₹ Crores) HDFC Bank Fixed Deposit 1.009 March 18, 2026 5.25% 0.011 Current Account Balance 0.067 - - - Total Unutilized 1.076 - - 0.011 Compliance and Monitoring The monitoring agency confirmed that all fund utilizations align with disclosures in the offer document, with no material deviations observed. The company has obtained necessary government and statutory approvals where required, and no unfavorable events affecting project viability were identified during the quarter. Kati Patang Lifestyle operates in the breweries & distilleries and fast-moving consumer goods sectors, with Mr. Gokul Naresh Tandan as the promoter. The company's systematic approach to fund deployment demonstrates adherence to regulatory requirements under SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015. We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better. 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