Gujchem Distillers India Limited announced a private placement of 4,000,000 convertible warrants at an issue price of INR 7.5 per warrant for gross proceeds of INR 30,000,000 on April 24, 2023. The transaction will include participation from promotors group including Swetsam Stock Holding Private Limited for 750,000 warrants and 13.35% stake, Amoli Samar Shah for 750,000 warrants and 13.35% stake, Samir Rohitbhai Shah for 574,000 warrants and 10.22% stake, Varun Falgunbhai Sheth for 500,000 warrants and 8.90% stake, and non-promoters including, Nirmal Rajnikant Shah for 700,000 warrants and 12.46% stake and Manish Kishor Ruparel for 726,000 warrants and 12.92% stake in the company. The warrants will be convertible into one common share of the company at INR 22.5 per share and will mature in 18 months from the date of the allotment.

The company will receive 25% equivalent to INR 7.5 per warrant and the total amount, which is INR 30,000,000, as upfront payment at the time of allotment of warrants and the remaining 75% will be paid within 18 months. The transaction has been approved by the board of directors of the company. The transaction is subject to approval under the terms of SEBI (Issue of Capital and Disclosure Requirement) Regulations, 2018.

The company will issue the securities through preferential basis.