Top investor Ashish Kacholia has taken a big step by investing in SG Finserve Ltd, a company specializing in supply chain finance. He bought 11,11,111 convertible warrants of the NBFC (Non-Banking Finance Company) through a preferential allotment. These warrants are priced at ₹450 each.
On October 25, SG Finserve’s board approved issuing 1 crore fully convertible warrants. These will allow holders, including both promoters and non-promoters, to buy one equity share per warrant. This allotment was confirmed in a regulatory filing on Friday.
Each warrant costs ₹450, with 25% paid upfront. Promoter Rohan Gupta, as well as other investors like Kitara PIIN 1103, Ashish Kacholia, RBA Finance and Investment Company, Marigold Partners, AGDG Enterprises LLP, and Anubhav Gupta Enterprises LLP, were among the recipients.
These warrants allow holders to buy an equal number of shares by paying the remaining 75% within 18 months. Shares from the conversion of these warrants will hold equal status with the company’s existing shares on the BSE.
Kacholia already held 6,38,366 shares of SG Finserve as of September 2024, giving him a 1.14% stake. SG Finserve’s promoters hold 48.38% of the company, while the public owns 51.62%.
Earlier, SG Finserve’s board approved issuing up to 1 crore warrants on September 5, along with raising the company’s authorized share capital from ₹60 crore to ₹70 crore. Shareholders backed these decisions through a postal ballot on October 7.
SG Finserve Stock Performance
Despite recent investments, SG Finserve’s stock performance has been uneven. The stock is down 13% in the past month and 9% for the year so far. Over the last year, shares have dropped 15%, but they’ve delivered exceptional returns in the long term: a gain of 129% over two years, 2,500% in three years, and a remarkable 16,000% over five years.
As of 12:10 pm, SG Finserve’s stock traded 0.25% lower at ₹443.00 per share on the BSE.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
