Penny Stock Below Rs 3: This Low-PE Food Products Company Approves Rs 53.76 Crore Preferential Issue; Managing Director Satyam Joshi’s HUF Among Proposed Warrant Allottees

On Wednesday, Indian equity benchmark indices traded lower, with the benchmark Nifty 50 index falling 58.10 points, or 0.24 per cent, to 24,276.45. Amid the market movement, NHC Foods share price rose 4.59 per cent to Rs 2.05, gaining Rs 0.09 per share. The company announced a series of capital-related decisions following its Board meeting held on August 25, 2026.

NHC Foods Approves Rs 53.76 Crore Preferential Issue

NHC Foods' Board has approved a proposal to issue, offer and allot up to 25,60,00,000 convertible warrants on a preferential basis to investors belonging to the non-promoter category, subject to shareholder approval.

The warrants have been priced at Rs 2.10 per warrant, aggregating to a total issue size of Rs 53.76 crore. The issue price is stated to be not lower than the floor price determined under the applicable SEBI ICDR Regulations.

Under the terms of the proposed issue, 25 per cent of the warrant price will be payable upfront, while the remaining 75 per cent will be payable when the warrants are converted into equity shares. Each warrant carries a 1:1 conversion ratio, meaning one warrant can be converted into one equity share. The conversion can be exercised within 18 months from the date of allotment.

The proposed preferential issue is subject to approval by shareholders through a special resolution at the company's Annual General Meeting scheduled for September 23, 2026.

18.18 Crore Shares Allotted Through FCCB Conversion

Separately, the Board approved the allotment of 18,18,79,020 fully paid-up equity shares following the partial conversion of 19 Foreign Currency Convertible Bonds (FCCBs) held by Emerging Market Opportunities Ltd.
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The FCCBs had an aggregate principal value of USD 19,00,000, equivalent to Rs 18,18,79,020 based on the exchange rate of Rs 95.7258 per US dollar as of August 24, 2026. The conversion was carried out at Rs 1 per equity share.

Following the allotment, NHC Foods' paid-up equity share capital has increased to Rs 94,38,06,060, comprising 94,38,06,060 fully paid-up equity shares of Rs 1 each. A further 240 FCCBs of USD 1,00,000 principal amount each remain outstanding after the conversion.

Authorised Share Capital Increased to Rs 2,000 Crore

The Board has also approved a significant increase in the company's authorised share capital. NHC Foods will increase its authorised share capital from Rs 100 crore to Rs 2,000 crore.

The authorised capital will now comprise 20,00,00,00,000 equity shares of Re 1 each, compared with the earlier authorised capital of 100 crore equity shares of Re 1 each.

Proposed Investors in Preferential Issue

The filing lists several proposed allottees for the preferential warrants. Among them, Satyam S Joshi HUF has been proposed to receive 14 crore warrants, while Mayur Kapadnis and Gauri Kapadnis have each been proposed to receive 1.50 crore warrants.

Janak Jitendra Doshi has been proposed to receive 90 lakh warrants, while several other proposed non-promoter allottees have been allocated 90 lakh warrants each. Assuming full conversion of the warrants, the proposed allottees collectively would hold approximately 21.38 per cent of the company's post-issue share capital, based on the calculation provided in the filing.

CFO Resigns; New CFO Appointed

The company also announced a change in its finance leadership. Manoj Kumar Sharma, Chief Financial Officer of NHC Foods, has resigned from his position due to personal reasons, with effect from the closing business hours of August 25, 2026.

The Board has appointed Pradeep Agarwal as the new Chief Financial Officer, effective September 1, 2026. According to the filing, Agarwal is a Chartered Accountant with more than 25 years of experience across sectors including IT, ITES, infrastructure, manufacturing and Banking. His experience includes fundraising, IPOs, capital-market transactions, private equity investments, financial restructuring and cost optimisation.

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Disclaimer: The article is for informational purposes only and not investment advice.