Aurum PropTech allots 51 lakh convertible warrants to its promoter, worth about ₹118 crore

Aurum PropTech Limited has told the exchanges that its board, by a circular resolution on 13 Oct 2026, allotted 51,00,000 fully convertible warrants to its promoter, Aurum RealEstate Developers Limited, on a preferential basis. The issue price is ₹231.421 per warrant, and each warrant can be converted into one equity share of face value ₹5, at a premium of ₹226.421. The total comes to ₹1,18,02,47,100, or about ₹118 crore.

The promoter has paid 25% of the amount upfront, ₹29,50,61,775 or about ₹29.51 crore, and the remaining 75% is payable when the warrants are exercised. The warrants can be exercised in tranches within 18 months of allotment. Any warrants not converted in that period lapse, and the amount paid on them is forfeited. The warrants remain unlisted, and the shares issued on conversion will rank equally with existing shares, be subject to a lock-in, and be listed on NSE and BSE.

Aurum RealEstate Developers holds 3,67,78,355 shares, or 38.22%. On a fully diluted basis, if all the warrants are converted, its holding would be 4,18,78,355 shares, or 40.56%. The issue follows a board meeting on 16 Jul 2026, shareholder approval at an extraordinary general meeting on 14 Aug 2026, and in-principle approvals from BSE and NSE on 28 and 29 Sep 2026.

Inference

A warrant is a right to take up a share later, so no new shares are created until the promoter converts. If all 51,00,000 warrants are converted, the number of shares would rise and the promoter's stake would go up from 38.22% to 40.56% on a fully diluted basis, while other shareholders' percentage would come down. The company would receive the balance of about ₹88.5 crore on conversion.

The filing does not say how the money will be used. The 25% already paid is forfeited if the warrants lapse. Shareholders may want to follow the conversions over the next 18 months and the company's statement on the use of the funds.