Sanrhea Technical Textiles Limited announced a private placement of up to 1,210,000 prepaid warrants at a face value of INR 10 each per warrant and at an issue price of INR 20.75 on February 11, 2022. The warrants will be convertible into one common share of the company at INR 20.75 per share with a premium of INR 10.25 per share and will mature in 18 months from the date of the allotment in one or more tranches. The company will receive 25% of the total amount, which is INR 6,276,875, as upfront payment at the time of allotment of warrants and the remaining 75% will be paid within 18 months.

The company will issue 757,200 warrants for Tushar Patel and 304,100 warrants for Tejal Patel. The transaction was approved by board of directors of the company. The securities are issued on preferential basis.

Post transaction Tushar Patel will hold 1,485,272 warrants for 29.71 % stake, and Tejal Patel will hold 786,028 for 15.72 % stake. Both investors returning investors. The transaction is subjected to approval of shares holders in its upcoming Annual general meeting.