Khadim India Approves ₹117.5 Million Convertible Warrant Issue

KOLKATA, India — Khadim India Ltd has officially announced the board-approved issuance of convertible equity share warrants aggregating up to ₹117.5 million. The decision, finalized during the company’s board meeting held on July 2, 2026, marks a strategic move to raise capital through a preferential allotment process.

According to regulatory filings submitted to the National Stock Exchange (NSE) and BSE Limited, the company will issue up to 1,068,182 fully convertible equity share warrants. Each warrant, with a face value of ₹10, is priced at an exercise price of ₹110, totaling approximately ₹117.5 million.

Strategic Capital Allocation

The warrants are to be issued to one of the company's promoters and several identified non-promoter entities. Under the terms of the issuance, each warrant provides the holder the right to convert it into one equity share of the company within a period of 18 months from the date of allotment.

This capital-raising initiative is subject to shareholder approval, for which the company has scheduled an Extraordinary General Meeting (EGM) on August 1, 2026. The company intends to utilize the funds raised through this preferential issue to support its broader growth objectives, which historically have included retail expansion and the modernization of its existing store network across India.

Compliance and Governance

The preferential issue is being conducted in strict adherence to the Companies Act, 2013, and the Securities and Exchange Board of India (SEBI) guidelines regarding the Issue of Capital and Disclosure Requirements. As part of the process, Khadim India has fixed July 25, 2026, as the "cut-off date" for determining shareholder eligibility for remote e-voting on the proposal.

In addition to the fundraising plan, the board also discussed corporate governance matters, including the continuation of Prof. (Dr.) Surabhi Banerjee’s tenure as an Independent Director, subject to shareholder approval.

Official Sources

According to the official corporate outcome filing dated July 2, 2026, the board of directors approved the issuance pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations. All terms and conditions governing the warrants, including conversion timelines and pricing, were disclosed in the annexures accompanying the regulatory submission.

Quote Section

According to officials, the board-approved preferential issue is intended to strengthen the company’s financial position and provide the necessary resources to execute its long-term strategic plans. Organizers stated that the issuance is a key step in allowing stakeholders to participate in the company's future growth trajectory.

Why It Matters

For investors, the issuance of convertible warrants provides insight into the company's funding strategy and its efforts to maintain a healthy capital structure without immediate dilution. For the broader retail market, Khadim India’s continued focus on capital infusion underscores the competitive nature of the Indian footwear sector, where maintaining a strong balance sheet is essential for scaling retail footprints and investing in brand-building initiatives.

Key Facts at a Glance

• Total Issue Size: Up to ₹117.5 million.

• Instrument: Fully Convertible Equity Share Warrants.

• Exercise Price: ₹110 per warrant.

• Conversion Window: Within 18 months of allotment.

• Key Event: Extraordinary General Meeting (EGM) scheduled for August 1, 2026.

FAQ

1. What is the purpose of the warrant issue? Khadim India plans to raise capital through this preferential issue to strengthen its financial base and support strategic growth initiatives, such as retail expansion.

2. Who are the allottees of these warrants? The warrants are being issued to one of the company's promoters and several identified non-promoter entities.

3. What happens if the warrants are converted? Upon conversion, each warrant will be exchanged for one equity share of Khadim India Ltd, having a face value of ₹10.

4. When can shareholders vote on this decision? Shareholders can vote on the proposal via remote e-voting starting July 29, 2026, leading up to the EGM on August 1, 2026.

Source: Khadim India Ltd - BSE/NSE Filing, BSE Limited, Securities and Exchange Board of India (SEBI)