Lactose India Ltd approves forfeiture of 1.5 million convertible warrants
The board sanctioned the forfeiture of convertible warrants issued on a preferential basis at a conversion price of Rs 174 per warrant.
What Lactose India Ltd announced
Lactose India Ltd (BSE: 524202) disclosed that its board, in a meeting held on 18 June 2026, approved the forfeiture of convertible warrants that the company had previously issued and allotted on a preferential basis. The decision was taken pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Details of the convertible warrants
- Quantity issued: 1,500,000 convertible warrants.
- Beneficiaries: Issued to persons other than the promoters and promoter group, on a preferential basis.
- Conversion price: Rs 174 per warrant, comprising a face value of Rs 10 and a premium of Rs 164.
- Date of issuance: The warrants were allotted on 5 December 2024.
- Forfeiture approval: The board approved the forfeiture of these warrants, though the exact number being forfeited was not disclosed in the filing.
"Considered and Approved the Forfeiture of Convertible Warrants ('Warrants') which the Company had issued and allotted 15,00,000 Convertible Warrants…" – Board resolution excerpt.
Key facts at a glance
| Detail | Value |
|---|---|
| Company | Lactose India Ltd |
| BSE ticker | 524202 |
| Filing date | 18 June 2026 |
| Instrument | Convertible Warrants |
| Warrants issued | 1,500,000 |
| Conversion price | Rs 174 per warrant (Rs 10 face value + Rs 164 premium) |
| Issuance date | 5 December 2024 |
| Forfeiture approved | Yes (number not disclosed) |
| Regulatory reference | SEBI LODR Reg. 30 (2015) |
Why this matters for investors
The forfeiture of convertible warrants can affect the company’s future share capital structure. If the warrants had been exercised, they would have resulted in the issuance of new equity at the predetermined conversion price, potentially diluting existing shareholders. By forfeiting the warrants, Lactose India Ltd reduces the pool of securities that could convert into equity, thereby limiting possible dilution. The action does not involve any cash outflow or inflow for the company, and no immediate impact on earnings or cash balances is indicated. However, investors should note that the filing does not specify the exact number of warrants being cancelled, leaving the precise effect on the capital structure uncertain.
Conclusion
Lactose India Ltd’s board has formally approved the forfeiture of a portion of the 1.5 million convertible warrants that were issued on 5 December 2024 at a conversion price of Rs 174. While the decision curtails potential future dilution, the filing does not reveal how many warrants are being cancelled, and the final impact on the company’s share capital will be known only after the forfeiture is executed.
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