Milkfood Ltd Allots 22 Lakh Equity Shares Worth ₹6.60 Crore Via Warrant Conversion

Key numbers

Market Cap	₹221.35 CrSmall Cap
P/E TTM	4.07Sector: 39.02
Net Profit YoY	116.79%Sep 2026 Quarter
Deal value	₹6.6 Cr
Share of market cap	3.0%
Share of annual revenue	1.5%

Key highlights

• Allotment of 22,00,000 equity shares of face value ₹5 at an issue price of ₹30 per share
• Total transaction value of ₹6.60 crore representing 3.0% of the company's market capitalization
• Conversion triggered by receipt of 75% balance consideration from two non-promoter allottees
• Issued and paid-up share capital increased to ₹13.89 crore following the allotment
• New shares to rank pari passu in all respects with existing equity shares of the company

Conversion Details and Capital Structure

Milkfood Limited has finalized the allotment of 22,00,000 equity shares to two individuals in the non-promoter category. The shares, priced at ₹30 each (including a ₹25 premium), were issued upon the conversion of warrants originally allotted on September 7, 2026. This exercise follows the receipt of the remaining 75% subscription amount from the allottees.

Consequently, the company's paid-up share capital has expanded to ₹13.89 crore, comprising 2.77 crore equity shares. The board meeting confirming this allotment commenced at 1:30 P.M. and concluded at 2:30 P.M.

on October 30, 2026.

Allottee Participation and Post-Issue Holding

• Mr. Sudhir Avasthi was allotted 11,00,000 shares, bringing his total holding to 22,27,160 shares or 8.01%
• Mr. Deepankar Barat was allotted 11,00,000 shares, resulting in a post-issue holding of 17,98,000 shares or 6.47%
• The allotment clears all warrants pending for conversion for these specific allottees
• Warrants were initially issued at a total price of ₹30 with 25% paid at the time of allotment
• The transaction marks the completion of the preferential issuance process initiated in mid-2026

Financial Performance and Market Context

The warrant conversion comes on the heels of strong quarterly results for the period ended September 30, 2026. Milkfood reported a 36.58% year-on-year growth in operating revenue, reaching ₹101.14 crore. Net profit for the quarter surged by 116.79% to ₹1.32 crore, a significant recovery compared to previous periods.

The company's operating profit margin stood at 6.31%, reflecting improved efficiency. Despite a 23.69% price increase over the last year, the stock maintains a Trailing Twelve Months P/E of 4.07, positioning it significantly below the industry average of 49.82.

What to watch next

• Listing approval for the 22,00,000 newly allotted equity shares on the BSE
• Financial results for the third quarter ending December 31, 2026
• Impact of increased equity base on future Earnings Per Share (EPS) calculations

Milkfood · financial snapshot

Share price	₹90.8
Market capitalisation	₹221.35 Cr
Revenue (annual)	₹412.93 Cr
Net profit (annual)	₹44.29 Cr
Revenue (latest quarter)	₹101.14 Cr+24.53% vs previous quarter
Net profit (latest quarter)	₹1.32 Cr+500.00% vs previous quarter
P/E (TTM)	4.07×Sector 39.02×
Promoter holding	54.04%+0.67% QoQ
FII holding	0%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.