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19 Apr 2026
Pakka Limited has scheduled an extraordinary general meeting (EGM) for May 5, 2026, at 05:00 PM IST to be conducted through video conferencing. The meeting will address significant corporate restructuring initiatives including authorized share capital enhancement and substantial fundraising through preferential securities issuance.
Authorized Share Capital Enhancement
The company proposes to increase its authorized share capital substantially to facilitate upcoming business requirements and fundraising activities.
Parameter: Current Structure Proposed Structure Total Authorized Capital: INR 60,05,00,000 INR 1,00,00,00,000 Equity Shares: 5,60,50,000 shares of INR 10 each 9,60,00,000 shares of INR 10 each Preference Shares: 4,00,000 shares of INR 100 each 4,00,000 shares of INR 100 each Additional Equity Creation: - 3,99,50,000 shares
The proposed increase requires shareholder approval under Section 61 of the Companies Act, 2013, and consequential amendment to the Capital Clause of the Memorandum of Association.
Preferential Securities Issuance
The company seeks approval for a comprehensive preferential issue aggregating INR 129,91,00,000 comprising equity shares and convertible warrants to fund the Jagriti Project expansion.
Convertible Warrants to Promoter Group
Details: Specifications Allottee: Yash Agro Products Limited Number of Warrants: 90,90,000 Issue Price: INR 110 per warrant Total Value: INR 99,99,00,000 Conversion Period: 18 months from allotment Status: Promoters' Group category
The warrants carry conversion rights into equivalent fully paid-up equity shares of INR 10 face value each. Warrant holders must pay 25% of the issue price upfront, with the balance 75% payable during conversion.
Equity Shares to Non-Promoters
The company will allot 27,20,000 fully paid-up equity shares to Alternative Investment Funds managed by Neo Alternative Asset Managers Private Limited.
Fund Name: Shares Allocated Neo Special Credit Opportunities Fund: 10,88,000 Neo Special Credit Opportunities Fund II: 13,61,904 Neo Special Credit Opportunities Fund II A: 1,95,840 Neo Credit Opportunities Fund I: 74,256 Total Equity Shares: 27,20,000 Issue Price: INR 110 per share Total Value: INR 29,92,00,000
Jagriti Project Expansion
The fundraising supports the ongoing Jagriti Project at the Ayodhya Plant, which has experienced scope expansion and timeline adjustments since initial approval.
Project Component: Specifications New Paper Machine (PM-4): 100 TPD capacity PM-3 Enhancement: 70 TPD to 80 TPD capacity Pulp Mill Augmentation: 135 TPD to 175 TPD capacity Additional Power Plant: 15 MW installation Revised Project Cost: INR 750 crores Extended COD: August 1, 2026
The project cost revision from INR 675 crores to INR 750 crores and four-month delay reflects technical adjustments in machinery and infrastructure requirements.
Pricing and Regulatory Compliance
The issue price of INR 110 per security complies with SEBI ICDR Regulations floor price requirements. The relevant date for pricing determination is April 2, 2026, being 30 days prior to the EGM date.
Pricing Parameter: Value 90-day VWAP: INR 94.21 10-day VWAP: INR 86.43 Registered Valuer Price: INR 109.13 Final Issue Price: INR 110.00
Care Ratings Limited has been appointed as the monitoring agency to oversee fund utilization, given the issue size exceeds INR 100 crores.
Shareholding Impact
Post-issuance, assuming full warrant conversion, the promoter group shareholding will increase from 41.65% to 49.00%, while maintaining compliance with minimum public shareholding requirements. The preferential issue will not result in change of control but will strengthen the company's capital structure for expansion activities.
Shareholders can participate in the virtual meeting through NSDL's e-voting platform, with remote e-voting available from May 2-4, 2026. The cut-off date for voting eligibility is April 30, 2026.
Pakka Limited announced the lapse of 36,00,000 fully convertible warrants that were allotted on a preferential basis, following the expiry of the conversion deadline on April 13, 2026. The company disclosed this development in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Warrant Details and Timeline
The warrants were originally allotted on October 14, 2024, at an issue price of ₹272 per warrant in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. Under the terms of issuance, warrant holders had 18 months from the allotment date to exercise their conversion option by paying the balance consideration.
Parameter Details Total Warrants Allotted 36,00,000 Issue Price per Warrant ₹272 Date of Allotment October 14, 2024 Conversion Deadline April 13, 2026 Warrants Exercised Nil Warrants Lapsed 36,00,000
Warrant Holders and Distribution
The lapsed warrants were held by two entities. Carelian Bharat Amritkaal Fund held 20,50,000 warrants, while Carnelian Asset Management LLP held 15,50,000 warrants. Neither entity exercised their conversion option within the stipulated timeframe.
Financial Impact
As per Regulation 169(1) of the SEBI ICDR Regulations, the company has forfeited the upfront amount equivalent to 25% of the issue price that was received at the time of warrant allotment. The total forfeited amount stands at ₹24,48,00,000.
Financial Impact Amount Total Issue Value ₹97,92,00,000 Upfront Amount (25%) ₹24,48,00,000 Amount Forfeited ₹24,48,00,000
Capital Structure Impact
The company clarified that there is no change in its paid-up equity share capital following the lapse of these warrants. The lapse means that the potential dilution that would have occurred upon conversion of these warrants into equity shares will not materialize.
Regulatory Compliance
Pakka Limited made this disclosure in accordance with SEBI regulations and referenced the SEBI Master Circular dated January 30, 2026, regarding the lapse of fully convertible warrants. The information has also been made available on the company's website at pakka.com for stakeholder reference.
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