Aeroflex Enterprises Fuels Subsidiary's Growth with ₹64.8 Cr Warrants

Hey there, finance enthusiasts! 👋 Let’s dive into some interesting news from Aeroflex Enterprises Limited (AEROENTER) that signals a strategic move for its future growth.

The company recently shared that its subsidiary, Aeroflex Neu Limited (which you might remember as Sah Polymers Limited), has made a significant move to bolster its business. Aeroflex Neu has successfully allotted a whopping 72,00,000 (that’s 7.2 million!) Convertible Warrants. Each of these warrants was issued at a price of ₹90, which means the subsidiary is set to raise a substantial ₹64.8 crore! 💰

So, what’s the big idea behind these warrants? Well, each warrant gives the holder the right to convert it into one Equity Share of face value ₹10. This capital infusion is earmarked specifically for the business expansion and future growth of Aeroflex Neu Limited. It’s a smart way to raise funds for growth without immediate dilution of equity.

And here’s where Aeroflex Enterprises Limited itself steps in: out of the 7.2 million warrants allotted by its subsidiary, Aeroflex Enterprises has directly subscribed to 36,00,000 of them. This shows a strong commitment from the parent company to support and invest in the growth trajectory of its subsidiary. It’s like a parent company giving its child a significant boost to expand and innovate! 🌱

This entire allotment process was carried out in full compliance with the Companies Act, 2013, and Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, ensuring everything is by the book. ✅

In essence, this move highlights Aeroflex Enterprises’ proactive approach to strengthening its group entities and setting the stage for future expansion. Keep an eye on how this capital infusion helps Aeroflex Neu Limited achieve its growth ambitions! ✨

source: Corporate Announcement

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