Shree Pushkar Chemicals plans ₹70 crore plant and ₹45 crore warrant issue

Shree Pushkar Chemicals & Fertilisers (NSE: SHREEPUSHK) has approved a ₹70 crore chemical plant at Unit-5 and a preferential issue of up to 8,54,060 warrants to its promoter, Punit Makharia, aggregating up to ₹45 crore; it said in a filing on 02 Nov 2026. An Extra-Ordinary General Meeting is set for 2 Dec 2026.

Key highlights

• Capital expenditure: ₹70 crore for a new chemical plant at Unit-5
• Proposed capacity addition: 3,000 MTPA, tentatively by March 2028
• Warrant issue: up to 8,54,060 warrants at ₹526.90 each
• Total issue size: up to ₹45.00 crore

The expansion and warrant issue in numbers

The plant is sized against customer demand

The company says the Unit-5 expansion is to cater to the growing demand of customers. Annexure A puts the capacity addition at 3,000 MTPA, with the plant tentatively due by March 2028.

The ₹70 crore investment is to be financed by the preferential warrant issue to the promoter and by internal accruals. Annexure A gives the existing capacity and utilisation as NA, so the filing does not show how much of the new capacity the current plant already covers.

Warrants carry an 18-month exercise window

Each warrant carries a right to subscribe one equity share of ₹10 face value, exercisable within 18 months of allotment. Warrants not exercised in that period lapse, and the amount paid is forfeited.

The promoter's stake would rise from 5.04% to 7.32% on a fully diluted basis if all warrants are converted. The earlier warrant tranche approved at the 10 Dec 2025 EGM was priced at ₹407.50 each, with 25% received and the balance of 75% payable within 18 months of the 27 Dec 2025 allotment.

Board also approved results and a dividend

The same meeting approved the unaudited standalone and consolidated results for the quarter and half year ended 30 Sep 2026, with limited review reports from the statutory auditors. The results notes record a dividend of ₹2.10 per share, totalling ₹6.79 crore, declared at the 33rd AGM on 28 Sep 2026.

Against the latest quarter in Blacklitt's data, total income of ₹284.94 crore (up 10.3% YoY) and net profit of ₹22.93 crore (up 9.4% YoY), the ₹70 crore plant is about a quarter of that quarter's total income.

What the expansion and warrant issue mean for Shree Pushkar's shareholders

The filing does not say why ₹526.90 was set as the warrant price or how it relates to the market price, how the capex and warrant proceeds will be split beyond the stated financing, or what effect the plant will have on results. Whether the EGM resolutions will pass is not known.