WS Industries Converts 33,444 Warrants, Forfeits ₹6.97 Crore in Final Exercise

WS Industries (India) Limited has completed its warrant conversion process with the allotment of 33,444 equity shares while forfeiting a substantial ₹6.97 crore from unexercised warrants. The Allotment Committee of the Board of Directors approved these actions at its meeting held on 4th March 2026, marking the conclusion of the 18-month warrant exercise period that began in September 2024. Warrant Conversion and Allotment Details The committee approved the conversion of 33,444 convertible warrants into fully paid-up equity shares after receiving the balance 75% of the issue price from Mamatha P, a promoter group warrant holder. The conversion was executed at the predetermined issue price of ₹149.50 per share, comprising a face value of ₹10 and premium of ₹139.50. Parameter Details Warrants Converted 33,444 Issue Price per Share ₹149.50 Face Value ₹10 Premium ₹139.50 Balance Consideration Received ₹37,49,908.50 Investor Mamatha P (Promoter Group) Distinctive Numbers 75861875 to 75895318 Significant Warrant Forfeiture Out of the 18,99,666 warrants that remained outstanding as of the conversion deadline, only 33,444 were exercised. The remaining 18,66,222 warrants were not exercised within the stipulated 18-month period from the allotment date, leading to their automatic forfeiture under Regulation 169 of the SEBI ICDR Regulations. Forfeiture Details Amount/Number Total Warrants Forfeited 18,66,222 Aggregate Forfeiture Amount ₹6,97,50,049 Number of Affected Investors 10 Investor Categories Non-Promoter The forfeited amount represents the 25% upfront subscription money that was collected at the time of initial warrant allotment, which the company now retains as per the terms of issuance. Major Forfeited Holdings The largest forfeited holding belonged to Maneesh Parmar with 9,36,456 warrants, followed by Infinity Value Investments Ltd with 3,34,448 warrants and Kamlesh Jain with 2,67,558 warrants. Other significant forfeitures included Bhawarlal Jain (1,33,780 warrants), Mariappan Saravanaguru and Manimaran (66,890 warrants each). Major Forfeited Holdings Warrants Maneesh Parmar 9,36,456 Infinity Value Investments Ltd 3,34,448 Kamlesh Jain 2,67,558 Bhawarlal Jain 1,33,780 Mariappan Saravanaguru 66,890 Manimaran 66,890 Regulatory Background and Timeline The warrant issuance process began with shareholder approval at an Extra-Ordinary General Meeting held on 2nd May 2024, where members approved the issuance of 27,15,722 convertible warrants. The company received in-principle approvals from BSE Limited on 20th August 2024 and National Stock Exchange of India Limited on 21st August 2024. Timeline Event 2nd May 2024 Shareholder approval for warrant issuance 20th August 2024 BSE in-principle approval 21st August 2024 NSE in-principle approval 5th September 2024 Allotment of 24,34,786 warrants 17th July 2025 Conversion of 5,35,120 warrants 4th March 2026 Final conversion deadline and committee meeting The Allotment Committee meeting commenced at 6:15 pm and concluded at 6:24 pm on 4th March 2026, with the necessary regulatory disclosures submitted to both stock exchanges as required under SEBI regulations and SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. W.S. Industries (India) Limited has disclosed receipt of penalty orders from GST authorities for alleged violations related to Input Tax Credit claims across multiple financial years. The company made this disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating its commitment to transparency despite the penalties being below mandatory disclosure thresholds. GST Orders and Financial Impact The State Tax Officer, Group-III, Intelligence-II, Chennai-6, issued orders under Section 74 of the Goods and Services Tax Act, 2017, alleging ineligible claim/availment of Input Tax Credit for five consecutive financial years. The orders also impose interest under Section 50(3) and penalties under Section 74 of the GST Act. Financial Year: Order Date Tax Amount (₹) Interest Amount (₹) Penalty Amount (₹) 2019-20: 23-02-2026 (rectification) 43,723 60,500 43,723 2020-21: 10-02-2026 2,352 7,998 2,352 2021-22: 16-02-2026 16,466 17,116 16,466 2022-23: 23-02-2026 (rectification) 80,966 1,80,569 80,966 2023-24: 23-02-2026 38,832 6,97,225 38,832 Total: 1,82,339 9,63,408 1,82,339 Regulatory Compliance and Disclosure Framework Under SEBI regulations, fines or penalties of ₹1 lakh or more imposed by sectoral regulators must be disclosed within 24 hours under Regulation 30. Penalties below ₹1 lakh require disclosure on a quarterly basis in the Corporate Governance Report. Since the penalty amount for each individual financial year falls below the prescribed monetary threshold of ₹1 lakh, mandatory immediate disclosure was not required. Penalty Reduction Provisions The GST Act provides for penalty mitigation under Section 74, allowing companies to avail a reduced penalty of 50% of the tax amount upon remittance of tax and applicable interest within 30 days from issuance of Form GST DRC-07. This provision could potentially reduce the company's penalty burden if timely payments are made. Corporate Governance and Transparency Despite the penalties being below mandatory disclosure thresholds, W.S. Industries has voluntarily made this consolidated disclosure in the interest of good corporate governance and transparency. The company stated that assessments for all five relevant financial years have now been concluded, prompting this comprehensive disclosure. Financial and Operational Impact The company has indicated that there is no material impact on its financials, operations, or other activities from these GST orders. The financial implication comprises tax, interest, and penalty amounts as specified in the respective orders issued through Form GST DRC-07 on the GST portal. Interest under Section 50(3) is payable at 18% per annum from the applicable due date until actual payment and requires recomputation at the time of remittance. We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better. Stock Markets are the true indicator of the growth of any country's economy. We are bullish on India, we are bullish on India's prospects to be one of largest economies of the world. We believe that Stock Markets provide an unique opportunity for all Indians to participate in the growth story of India. We are enabling the same for Indians. As financial services are becoming more accessible, there is now a large set of Indians today who are financially aware and literate. They value time and seek high quality products & services. 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