Conversion of 16,00,000 warrants into equity shares, raising ₹1.98 crore. Paid-up equity share capital now stands at ₹366.63 crore.
Reader Takeaway: Capital infusion strengthens equity base; future listing approvals are key.
What just happened (today’s filing)
Swojas Foods Limited’s Board of Directors, in a meeting on February 27, 2026, approved the conversion of 16,00,000 warrants into an equal number of equity shares.
This conversion involved the payment of the remaining exercise price of ₹12.375 per warrant, bringing in ₹1.98 crore for the company.
The company’s paid-up equity share capital has consequently increased from ₹350.63 crore to ₹366.63 crore.
These newly allotted shares, with a face value of ₹10 each, will rank pari-passu with existing equity shares.
Why this matters
This transaction strengthens Swojas Foods’ equity base, providing additional capital that can be deployed for business operations or growth initiatives.
An increased equity base can potentially improve the company’s financial leverage and attractiveness to investors.
However, the issuance of new shares leads to dilution for existing shareholders, reducing their proportionate ownership in the company.
The backstory (grounded)
Swojas Foods, previously known as Swojas Energy Foods Limited, has a history that includes voluntary winding up proceedings due to significant losses.
The company has been actively raising funds through warrants recently. In November 2025, it approved raising up to ₹79.99 crore via convertible warrants at ₹16.50 each.
A substantial allotment of 2.59 crore warrants worth ₹42.87 crore occurred in December 2025, with a conversion exercise price of ₹12.375 per warrant payable within 18 months. The current conversion is part of this larger capital-raising exercise.
What alters now
- The company’s equity share capital has increased by ₹16.00 crore (1.6 million shares).
- The financial standing of Swojas Foods is bolstered by the additional ₹1.98 crore in cash.
- New equity shares issued are identical to existing ones and carry the same rights.
Risks to watch
The company has historically faced financial instability, including a period of voluntary winding up.
Its balance sheet has been described as weak, and it may face solvency issues.
Future conversions of remaining warrants could lead to further dilution for existing shareholders.
Peer comparison
Swojas Foods operates in the agriculture and food processing sector, with peers including NHC Foods and Flex Foods.
Compared to some peers, Swojas Foods has displayn lower financial stability, evidenced by a lower Altman Z score and a weaker balance sheet.
Context metrics (time-bound)
- The company’s paid-up equity share capital increased by ₹16.00 crore (from ₹350.63 crore to ₹366.63 crore) following the conversion of 16,00,000 warrants.
What to track next
- Monitor for stock exalter approval for the listing and trading of the 16,00,000 newly issued equity shares.
- Track future conversions of the remaining warrants issued under the larger fundraising program.
- Observe the company’s financial performance and balance sheet strength post-capital infusion.
Disclaimer:This content is for educational and informational purposes only and does not constitute investment, financial, or trading advice, nor a recommfinishation to acquire or sell any securities. Readers should consult a SEBI-registered advisor before building investment decisions, as markets involve risk and past performance does not guarantee future results. The publisher and authors accept no liability for any losses. Some content may be AI-generated and may contain errors; accuracy and completeness are not guaranteed. Views expressed do not reflect the publication’s editorial stance.
Leave a Reply