Sambhv Steel Tubes Limited moves to reshape its capital structure

The warrants are priced at Rs 115 each, which is Rs 0.67, or approximately 0.59%, above the SEBI-referenced floor price of Rs 114.33. The floor reflects the higher 10-day VWAP; the 90-day VWAP was Rs 112.18. ^[1]

Upon full conversion, the 8,695,400 warrants would create 8,695,400 new equity shares. Using the existing equity share capital of Rs 294.67 Crores and Rs 10 face value per share, the pre-conversion base is approximately 29,467,000 shares. ^[2] Each warrant converts into one fully paid-up equity share. ^[3]

• Increase versus existing equity base: 8,695,400 / 29,467,000 = 29.51%
• Post-conversion shares: approximately 38,162,400
• New shares as a percentage of post-conversion equity: approximately 22.78%

Thus, the issue is only modestly above the SEBI floor, while full conversion would expand the share count by 29.51% relative to the current base, leaving the warrant holders with approximately 22.78% of the post-conversion equity, assuming all warrants are exercised.

The disclosure does not specify a rupee or percentage split between working capital, debt repayment, and capital expenditure.

• Working capital: No specific allocation stated.
• Debt repayment: No specific allocation stated.
• Capital expenditure: Management indicated that the initial warrant proceeds would be used for planned capex in a subsidiary, including expansion projects, but did not assign a specific amount. ^[4]
• Funds received so far: Rs 24.99 Crores, representing 25% of the warrant issue price; the remaining 75% is payable on conversion. ^[3]

Accordingly, the only identifiable use is a qualitative capex intent; the preferential-allotment disclosure does not quantify the portion earmarked for working capital versus debt repayment or capex.

The seven allottees cannot be named reliably from the cited allotment disclosure: it only states that 8,695,400 warrants were allotted to seven parties comprising promoter-group and non-promoter investors, without giving the individual names or warrant split. The warrants were allotted at Rs 115 each and are convertible into equity shares within 18 months after payment of the balance subscription amount. ^[5]

Promoter-stake impact

The latest quarterly shareholding pattern is Q1 FY27, in which the promoter group held 56.11% of the equity; promoter encumbrance was reported at 0.00% of promoter holdings.

Using the reported equity share capital of Rs 294.67 Crores and Rs 10 face value, the existing share count is approximately 294.67 million shares. ^{[2] [6]} The full conversion of 8.6954 million warrants would increase the diluted share count to approximately 303.365 million shares. ^[1]

These are derived outcomes using the Q1 FY27 promoter holding of 56.11%, the existing approximately 294.67 million shares, and the full 8.6954 million warrant conversion. The promoter group would need to receive and convert approximately 4.879 million warrants, or 56.11% of the issue, merely to preserve its current 56.11% stake. If it receives fewer, the promoter percentage falls; if it receives more, it rises.

Therefore, the actual post-conversion promoter stake cannot be determined until the warrant-wise allotment schedule is available. The names of existing promoter shareholders in Q1 FY27 should not be treated as warrant allottees unless the allotment filing specifically matches them.