Power & Instrumentation (Gujarat) Limited — Important, 10-07-2025: Disclosure of material issue

Power and Instrumentation (Gujarat) Ltd has announced a board meeting on July 10, 2025, approving the allotment of 2.9 lakh equity shares upon conversion of warrants at Rs. 83.75 per share (including Rs. 73.75 premium). The shares were allotted to the promoter group (2 lakh shares) and a non-promoter investor (90,000 shares), increasing the promoter group's holding from 6.64% to 7.65% and the non-promoter's stake to 0.51%, taking total equity to 8.16%.

Issue: The company is converting warrants into equity shares, which dilutes existing shareholders but raises funds through preferential allotment.

Impact: The dilution is moderate, but the premium pricing suggests a capital infusion at a favorable valuation, potentially strengthening the company’s financial position.

Response: The company is executing the warrant conversion as planned, with 50.96 lakh warrants issued earlier and 2.9 lakh now converted, indicating ongoing capital raising efforts to support growth or debt reduction.