Pelatro Limited to Raise ₹27.40 Crore via Convertible Warrants Following Revised Plan

Key numbers

Issue Size	₹27.40 Cr6.85L Warrants
Market Cap	₹416.27 CrSoftware & Services
Revenue TTM	₹151.76 CrOperating Revenue
Day RSI	62.95Neutral Zone

Key highlights

• Preferential issue of 6,85,000 convertible warrants at ₹400 per warrant, aggregating to ₹27.40 crore
• Upfront payment of 25% (₹100 per warrant) required at subscription, with the balance 75% due upon conversion
• Proceeds of ₹21.05 crore earmarked for working capital and ₹6.35 crore for general corporate purposes
• Nine proposed allottees include two promoters subscribing to a combined 2,00,000 warrants
• Warrants are convertible into equity shares within 18 months from the date of allotment

Details of the Fund Raise

Pelatro Limited is proceeding with a preferential issue of 6,85,000 convertible share warrants, a slight revision from the previously proposed 7,00,000 warrants. The warrants are priced at ₹400 each, bringing the total aggregate consideration to ₹27.40 crore. Under the terms of the issue, subscribers must pay 25% of the total price upfront as a subscription amount, while the remaining 75% is payable when the warrant holder exercises the option to convert them into equity shares.

These warrants have a tenure of 18 months from the date of allotment, providing the company with a phased capital infusion to support its long-term financial objectives.

Strategic Use of Proceeds

• Allocation of ₹21.05 crore to meet escalating working capital requirements
• Utilization of ₹6.35 crore for general corporate purposes, capped at 25% of gross proceeds
• Funds to be spent tentatively within two years from the last date of warrant maturity
• Maintenance of proceeds in a dedicated account with Kotak Mahindra Bank until full utilization
• Compliance with Chapter V of SEBI ICDR Regulations regarding deployment of capital

Impact on Ownership Structure

The preferential allotment includes participation from nine specific allottees. Promoters Varun Menon and Kiran Menon are set to receive 1,20,000 and 80,000 warrants respectively, demonstrating continued internal support for the company's growth. Among the public allottees, Prabha Mohta and Kishan Gopal Mohta are the largest subscribers, with 1,70,000 and 1,65,000 warrants respectively.

Upon full conversion of these warrants, the promoter group holding is expected to recalibrate from the current 52.62% to approximately 49.45% on a fully diluted basis, while total public shareholding will increase to 50.55%.

Business and Financial Context

Operating in the specialized BPO/KPO and marketing automation sector, Pelatro has shown significant growth with annual operating revenue reaching ₹138.23 crore, a 60.9% year-on-year increase. The company's net profit TTM stands at ₹19.97 crore, supported by an operating profit margin of 19.62% in the latest quarter. With a price-to-earnings ratio of 22.99, which is closely aligned with the industry average of 23.54, the company maintains a Piotroski Score of 5.

This fundraise is positioned to provide the necessary liquidity to maintain this revenue momentum and manage operational costs effectively.

Pelatro · financial snapshot

Share price	₹400
Market capitalisation	₹416.27
Revenue (annual)	₹138.23
Net profit (annual)	₹18.10
P/E (TTM)	22.99×Sector 21.38×
Promoter holding	52.62%0.00% QoQ
FII holding	2.41%Current quarter

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