Prostarm Info Systems Announces Corrigendum to AGM Notice for Preferential Issue
Prostarm Info Systems Limited issued a corrigendum to its 19th AGM notice, scheduled for September 11, 2026. The company plans a preferential issue of up to 28,98,717 warrants at ₹147 each, totaling ₹42.61 crore. Funds will be used for working capital. The issue price is ₹147 per warrant.
The preferential issue of warrants aims to raise a significant amount (₹42.61 crore) for working capital, which can impact the company's financial health and operational capacity. Changes in the number of allottees and warrant details necessitate this corrigendum, indicating a material update to a planned corporate action.
The announcement is a corrigendum to an AGM notice regarding a preferential issue. While the preferential issue is a fundraising activity, the nature of the announcement as a correction and the detailed procedural changes temper a strongly positive sentiment. It's primarily an update on an ongoing corporate action.
Prostarm Info Systems Limited has issued a corrigendum to the notice of its 19th Annual General Meeting (AGM), scheduled for Friday, September 11, 2026, at 3:00 PM IST, to be held via video conferencing. This corrigendum addresses changes to Item No. 6 of the AGM notice concerning the proposed Preferential Issue of Fully Convertible Warrants.
The company is seeking shareholder approval for the issuance of up to 28,98,717 warrants, each convertible into one equity share, at an issue price of ₹147 per warrant. The total issue size amounts to ₹42.61 crore. The primary objective of this preferential issue is to raise funds for the company's working capital requirements, including day-to-day operational needs and business expenditures, aiming to strengthen its liquidity position.
The corrigendum clarifies several aspects of the preferential issue, including adjustments to the number of warrants and the total issue size due to the disqualification of one proposed allottee. It also revises disclosures related to SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (SEBI ICDR Regulations), including clarifications on Regulation 166A and the post-issue shareholding pattern. The issue price of ₹147 per convertible warrant remains unchanged, and the decision to revise the number of warrants and issue size is a consequence of the allottee's disqualification.
The warrants are proposed to be issued to non-promoter category individuals and entities. The company has obtained a valuation report from an independent registered valuer, Ms. Kavita Joshi, who determined the fair value of equity shares at ₹145.78 per share. The approved issue price of ₹147 per warrant is higher than both the floor price (₹146.94) determined by the stock exchanges and the fair value determined by the valuer.
The funds raised will be utilized for working capital within 24 months from receipt. 25% of the warrant issue price will be paid upfront upon allotment, with the remaining 75% payable upon exercise of the warrants within 18 months.
A plain-language summary of a public exchange filing by Prostarm Info Systems Limited. Read the original for the full detail.