Sahana System Limited to Raise ₹125 Crore via Preferential Warrant Issue at ₹950

Key numbers

Market Cap	₹998.94 CrSoftware & Services
P/E Ratio	14.72Sector PE 22.91
1Yr Change	13.23%Price Performance
Deal value	₹125 Cr
Share of market cap	12.5%

Key highlights

• Issuance of 13,15,789 fully convertible equity warrants at an issue price of ₹950 per unit
• Aggregate fundraise of ₹125 crore represents approximately 12.5% of current market capitalization
• Warrants are convertible into equity shares of ₹10 face value within 18 months from allotment
• Participation from four non-promoter investors including Magnanimous Trade & Finance and Shrem Investments
• Board also approved appointment of Mr. Ringkesh Jain as an Independent Director for a five-year term

Preferential Issue Mechanism and Pricing

The Board of Directors has sanctioned the issuance of 13,15,789 convertible equity warrants at an issue price of ₹950 per unit, which sits slightly above the current market price of ₹942. This fundraise, aggregating to ₹125 crore, will be conducted on a preferential basis to identified non-promoter entities. Each warrant is convertible into one fully paid-up equity share of face value ₹10 each.

Investors are required to pay 25% of the total consideration upfront, with the remaining 75% payable at the time of warrant exercise. The warrants carry a maximum conversion period of 18 months from the date of allotment, in accordance with SEBI ICDR Regulations.

Identified Non-Promoter Investors

• Magnanimous Trade & Finance Limited: 5,26,316 warrants (4.36% post-issue stake)
• Shrem Investments Private Limited: 2,63,158 warrants (2.18% post-issue stake)
• Bhavesh Joshi: 2,63,158 warrants (2.23% post-issue stake)
• Ashish Bhutani: 2,63,158 warrants (2.18% post-issue stake)

Strategic Capital Deployment and Pipeline

This fundraising activity follows the company's aggressive growth trajectory and expansion into government business. Sahana System is currently targeting an aggregate government business pipeline of over ₹3,000 crore over the next five years, with significant focus on defense and Master System Integration projects. The current raise comes on the heels of several capital-strengthening moves, including a ₹48.87 crore rights issue in November 2024 and recent project wins such as the ₹69.51 crore gate automation project from RailTel.

The capital infusion is expected to strengthen the balance sheet as the company services these large-scale technology deployments.

Financial Performance and Valuation Context

Sahana System enters this round with a robust financial profile, having recorded a revenue growth of 99.65% and a net profit of ₹67.87 crore in the previous fiscal year. At a current P/E of 14.72, the company trades at a discount to the industry average of 21.1. The promoter group currently holds a 57.31% stake, which will see proportional dilution upon the full conversion of these warrants.

The board has initiated a postal ballot to seek shareholder approval, with the e-voting period scheduled from October 17 to November 15, 2026.

What to watch next

• Completion of the postal ballot and e-voting process on November 15, 2026
• Allotment of warrants within 15 days of receiving shareholder approval
• Updates on the execution of the ₹69.51 crore RailTel gate automation project
• Progress report on the ₹3,000 crore government business bidding pipeline

Sahana System · financial snapshot

Share price	₹942
Market capitalisation	₹998.94 Cr
Revenue (annual)	₹331.15 Cr
Net profit (annual)	₹67.87 Cr
P/E (TTM)	14.72×Sector 22.91×
Promoter holding	57.31%0.00% QoQ
FII holding	0.76%Current quarter

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