Velox Shipping And Logistics To Consider Issuance Of Convertible Warrants

Updated: December 03, 2025 14:12

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Velox Shipping and Logistics Ltd has notified exchanges that its board will consider issuing convertible warrants to raise funds. The potential preferential issuance, subject to shareholder and regulatory approvals, aims to support growth initiatives and strengthen the company’s capital structure. Specific terms will be finalized and disclosed post board approval.

Velox Shipping and Logistics Ltd has proposed the consideration of issuing convertible warrants, signalling a move to bolster capital for expansion and operational needs. The company informed stock exchanges that the proposal would be taken up by its board, consistent with standard capital-raising processes under SEBI and exchange regulations. Convertible warrants typically allow investors to subscribe to equity at a future date at a pre-set price, providing structured financing flexibility while aligning long-term interests. The move comes amid ongoing capacity and network scaling across logistics corridors, where funding access is critical for asset additions, technology upgrades, and working capital efficiency.

Key highlights from the announcement include

Board consideration pertains to issuance of convertible warrants, a commonly used instrument for structured capital raising.
The proposed issuance is expected to be on a preferential basis, subject to shareholder approval and applicable regulatory clearances.
Final terms—such as issue size, conversion ratio, pricing, tenure, and allotment schedule—will be disclosed after board and regulatory processes conclude.
Convertible warrants provide optionality to investors, enabling future equity infusion while managing immediate dilution.
Proceeds are typically deployed toward capacity augmentation, fleet and infrastructure additions, technology investments, and working capital.
The proposal aligns with broader corporate finance practices observed in listed logistics and shipping firms pursuing scale and efficiency.
Historical exchange updates indicate the company’s regular engagement with capital markets for results and fundraising events.
Compliance will follow SEBI ICDR Regulations, exchange listing norms, and corporate governance standards for preferential issues.

The consideration of convertible warrants underscores Velox Shipping and Logistics’ focus on strategic capital planning to support growth. By opting for a warrant structure, the company can time equity conversion with business milestones, balancing liquidity needs and shareholder interests. Investors will watch for pricing, promoter participation, and lock-in conditions once detailed terms are released.

Sources: BSE India corporate filings, NSE India, Company announcement, Trendlyne board meetings

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