Affordable Robotic & Automation Ltd.'s Board Approves Preferential Issue of Warrants to Promoter Against Conversion of ₹21 Crore Loan

Affordable Robotic & Automation Ltd. (ARAPL) (BSE: 541402, NSE: AFFORDABLE) has announced that its Board of Directors has approved the preferential issue of 10.94 lakh fully convertible warrants to promoter Mr. Melind Padole, MD & CEO, at an issue price of ₹192 per warrant (including a premium of ₹182 per share), aggregating to ₹21 crore. The warrants are proposed to be issued against conversion of an outstanding unsecured loan of ₹21 crore advanced by the promoter to the company, in accordance with the pricing formula prescribed under Regulation 164 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

The proposed issuance is subject to the approval of shareholders by way of a special resolution through postal ballot (notice for which was issued on July 20, 2026), and other requisite regulatory and statutory approvals.

The warrants allotted to the promoter shall be subject to a lock-in period as prescribed under applicable SEBI regulations.

Rationale and Impact

The settlement of the ₹21 crore loan liability through this conversion will strengthen ARAPL's capital structure and reduce debt obligations, thereby improving key leverage and coverage ratios. On a fully diluted basis, upon conversion of the warrants, promoter group shareholding is expected to change from 41.41% to approximately 46.36%, with public shareholding adjusting correspondingly.

The company believes the conversion of debt into equity-linked capital will enhance financial flexibility, improve the balance sheet, and create a stronger foundation for pursuing strategic growth opportunities in India's rapidly expanding industrial automation sector.

Commenting on the development, Mr. Melind Padole, MD & CEO, ARAPL, said, "At ARAPL, we believe there is immense opportunity ahead for industrial automation in India. As manufacturers increasingly embrace smart factories, robotics and advanced automation to enhance competitiveness, we believe the sector is entering a sustained phase of growth driven by the 'Make in India' and advanced manufacturing agenda. The conversion of the promoter loan into equity-linked capital is more than a balance sheet exercise - it is a strategic commitment to the company's future. Strengthening the capital base while reducing debt enhances our financial resilience, improves our ability to invest in innovation, expand execution capabilities, and pursue emerging opportunities across high-growth manufacturing sectors. We remain focused on building a technologyled, globally competitive Indian automation company that creates long-term value for all stakeholders."

Shares of Affordable Robotic & Automation Ltd was last trading in BSE at Rs. 185.05 as compared to the previous close of Rs. 189.60. The total number of shares traded during the day was 1154 in over 46 trades.

The stock hit an intraday high of Rs. 193.95 and intraday low of 182.10. The net turnover during the day was Rs. 215215.00.

Source : Equity Bulls

Keywords

AffordableRoboticandAutomation INE692Z01013 IndustrialMachinery ARAPL PreferentialIssue