What Is the Fund Raise?
Pelatro Limited is proposing a preferential issue of 7,00,000 convertible share warrants on a private placement basis. Each warrant is priced at ₹400, reflecting a premium over the face value of ₹10, based on the volume-weighted average price over the preceding 90/10 trading days. The warrants carry an option for the holders to subscribe to one equity share per warrant within 18 months from the date of allotment.
Investors are required to pay 25% of the total consideration upfront at the time of subscription, with the remaining 75% payable at the time of exercising the conversion option.
Use of Proceeds
- ₹21.50 crore earmarked for meeting the company's growing working capital requirements
- ₹6.50 crore allocated for general corporate purposes to strengthen the balance sheet
- Funds to be utilized tentatively within two years from the last date of warrant maturity
- Proceeds will be maintained in a separate bank account with Kotak Mahindra Bank Limited until full deployment
Strategic Rationale
The capital infusion is timed to support Pelatro's scaling operations in the telecom technology and customer engagement software sectors. By issuing 2,00,000 warrants to the promoter group, the company ensures continued alignment with its primary leadership while securing long-term capital commitments. This fundraise follows a period of robust financial performance, with the company recording a 60.9% year-on-year growth in annual operating revenue.
The preferential route allows the company to onboard specific institutional and public investors like the Invicto Incrementum Fund, enhancing its institutional footprint while funding expansion without immediate total equity dilution.
Business and Financial Context
Pelatro Limited operates as a global technology partner for telecom operators, providing a Customer Engagement Hub under its 'm-AdS' brand to increase average revenue per user. The company's financial profile shows significant momentum, with a net profit of ₹18.1 crore in the last fiscal year and a TTM net profit of ₹19.97 crore. Its current P/E ratio of 22.96x sits slightly below the industry average of 25.11x, supported by a durable return on equity of 17.4%.
The company recently achieved its NSE SME listing, and this fundraise marks a secondary move to capitalize on sector growth and liquidity.
