Virinchi Limited Greenlights Rs 56 Crore Fundraising via Convertible Equity Warrants to Boost Growth

Image Source: Virinchi

Virinchi Limited's Board approved raising Rs 56 crore through a preferential issue of 2 crore convertible equity warrants at Rs 28 each. The allotment to promoter and public entities aims to strengthen the balance sheet with warrants convertible into equity shares within 18 months, pending shareholder approval.

Virinchi Limited’s Board of Directors announced a strategic fundraising initiative on October 15, 2025, approving a preferential issue of fully convertible equity warrants to select promoter and non-promoter entities. The move targets raising up to Rs 56 crore, marking a significant step to reinforce the company’s capital base.

Key highlights of the resolution include:

The issuance of up to 2 crore convertible equity warrants priced at Rs 28 each, exceeding the floor price regulated by SEBI’s ICDR norms.
Allocation of 1.6 crore warrants to Vivo Bio Tech Limited, part of the promoter group, and 40 lakh warrants to IT Peer Technologies LLC, categorized as public investors.
Warrants will be exercisable at one equity share per warrant, providing an option to convert within a maximum tenure of 18 months from allotment.
If warrants remain unexercised after 18 months, they will lapse, and the company will forfeit the amount paid on those warrants.
The preferential issue's total allotment value of Rs 56 crore is subject to the approval of Virinchi’s members at the forthcoming Extraordinary General Meeting scheduled for November 15, 2025.
Post-conversion, the promoter shareholding is projected to rise from 37.51% to 44.44%, while public shareholding would adjust from 62.49% to 55.56%, reflecting a strengthened promoter stake.
The company has also set November 8, 2025, as the cutoff date for voting eligibility for shareholders at the EGM.

This fundraising move underscores Virinchi's intent to bolster its financial position, providing fresh capital to support operational and growth initiatives. By increasing the promoter group’s holding, the company signals confidence in its future prospects and aligns interests closely with shareholder value creation. Investors should monitor developments regarding the EGM approval and subsequent warrant conversions to gauge impact on ownership and company strategy.

Source names: Virinchi Limited official board meeting announcement, ScanX.Trade corporate news, NSE India regulatory filings, Market Screener, and Reuters financial news.

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