Tunwal E-Motors Ltd has approved a proposal to issue up to 34 lakh convertible warrants on a preferential basis to identified members of its promoter and promoter group for an aggregate consideration of up to ₹10.20 crore.
The proposal was approved by the company’s board of directors at its meeting held on September 4, 2026, subject to shareholder approval and other applicable statutory and regulatory approvals.
Warrants priced at ₹30 each
The warrants will be issued at ₹30 per warrant, comprising a face value of ₹2 and a premium of ₹28. Each warrant will be convertible into one fully paid-up equity share of Tunwal E-Motors with a face value of ₹2, at an issue price of ₹30 per share.
The proposed preferential issue will be made for cash consideration. Investors will have to pay 25% of the issue price at the time of subscription and allotment, while the remaining 75% will be payable when the warrants are exercised. The amount already paid towards the warrants will be adjusted against the issue price of the resultant equity shares.
Conversion within 18 months
The warrants can be converted into equity shares in one or more tranches within 18 months from the date of allotment.
Any warrants that are not exercised within the prescribed period will lapse, with the amount paid towards those warrants being forfeited.
Tunwal E-Motors said the issue price has been determined in accordance with the applicable provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, based on pricing and valuation reports obtained from a registered valuer.
Promoter group to receive warrants
Of the proposed 34 lakh warrants, 25.50 lakh will be allotted to Jhumarmal Pannaram Tunwal, Managing Director of the company.
Tunwal Jhumarmal P HUF will receive 3.40 lakh warrants, while Sangita Jhumarmal Tunwal, Spreta Jhumarmal Tunwal and Bhupesh Tunwal will each receive 1.70 lakh warrants.
Promoter holding to rise to 65.91%
The proposed issue will increase the promoter and promoter group’s ownership in Tunwal E-Motors if all the warrants are converted into equity shares.
On a fully diluted basis, promoter and promoter group shareholding is expected to rise from the current 63.90% to 65.91% upon full conversion of the warrants.
The preferential issue will now be placed before shareholders for approval at the company’s 8th Annual General Meeting, scheduled for September 29, 2026.
The ₹10.20 crore fund-raising through the preferential issue will give Tunwal E-Motors additional capital while potentially increasing promoter and promoter group ownership through the conversion of the warrants into equity shares.