| Event Value | ₹9.46 CrFund Raise |
|---|---|
| Market Cap | ₹283.21 CrMicro Cap |
| Issue Price | ₹17218.2% Prem vs Floor |
| RSI | 71.99Overbought Zone |
| Execution period | 18 months |
Key highlights
- Issuance of 5,50,000 convertible warrants at a price of ₹172 per warrant
- Total capital raise valued at ₹9.46 crore through the promoter and promoter group category
- Issue price includes a premium of ₹162, standing significantly above the floor price of ₹145.51
- Warrant holders to pay 25% of the consideration upfront with the balance due within 18 months
- Proposed allotment will increase promoter group shareholding from 54.20% to 55.52% upon conversion
Details of the Warrant Issue
The Board of Directors of Sat Kartar Life Limited approved the issuance of up to 5,50,000 convertible warrants on a preferential basis to specific members of the promoter group. Each warrant is priced at ₹172, comprising a face value of ₹10 and a premium of ₹162. This pricing is notably higher than the SEBI-mandated floor price of ₹145.51.
Allottees include Manprit Singh Chadha, Archana Chadha, and Simrati Kaur. Subscribers will pay 25% of the total consideration, approximately ₹2.36 crore, at the time of allotment, with the balance 75% payable upon exercise of the conversion option within an 18-month tenure.
Strategic Focus and Use of Funds
The capital infusion is intended to bolster the company’s integrated healthcare platform, which spans Ayurveda products and hospital-based services. Management indicates that the promoter group's decision to subscribe at a premium reflects long-term commitment to the company's growth prospects. This funding comes as the company continues its transition from its retail roots, formerly operating as Sat Kartar Shopping Limited, toward a more specialized pharmaceutical and biotechnology profile.
The proposed issuance will not result in any change in management or control of the entity, ensuring operational continuity while strengthening the balance sheet.
Financial Performance and Valuation
Sat Kartar Life reported an annual operating revenue of ₹200.7 crore and a net profit of ₹17.1 crore for the fiscal year ending March 2026. The company’s annual net profit grew by 74.25% year-on-year, while revenue increased by 24.09%. Currently, the stock trades at a Price-to-Earnings ratio of 16.56x, which stands in contrast to the industry P/E of 49.82x.
The company maintains a healthy Return on Equity of 25.29% and a Return on Assets of 20.15%. These efficiency metrics suggest robust internal capital generation as the company seeks to expand its footprint in the Ayurveda and healthcare sectors.
Upcoming Shareholder Meeting
- Extra Ordinary General Meeting (EGM) scheduled for October 23, 2026, at 10:00 A.M.
- Record date for electronic voting eligibility fixed as October 16, 2026
- Post-conversion promoter holding projected to reach 55.52% of the expanded equity capital base
- Warrants are convertible into equity shares in one or more tranches within 18 months of allotment
- EGM to be conducted via Video Conference or Other Audio Visual Means
“The participation of the Promoter(s)/Promoter Group at a price materially higher than the applicable floor price reflects their continued confidence and commitment towards the Company’s business strategy, growth prospects and long-term value creation.”
| Share price | ₹179.3 |
|---|---|
| Market capitalisation | ₹283.21 |
| Revenue (annual) | ₹200.70 |
| Net profit (annual) | ₹17.10 |
| P/E (TTM) | 16.56×Sector 49.81× |
| Promoter holding | 63.62% |
| FII holding | 0.13%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Sat Kartar Life Limited announcing the board approval for a preferential issue of convertible warrants. Market figures from a third-party data provider.
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