Affordable Robotic & Automation Limited Approves ₹21 Crore Warrant Issue to Promoter
July 23, 2026: Affordable Robotic & Automation Limited (ARAL) has approved a preferential issue of fully convertible warrants worth ₹21 crore to its promoter, Milind Padole, Chairman, Managing Director and CEO. The Board of Directors approved the proposal as part of a strategic move to strengthen the company’s balance sheet by converting an existing unsecured loan from the promoter into equity-linked capital.
The proposed transaction reflects the promoter’s continued confidence in the company’s long-term growth prospects while enhancing ARAL’s financial position.
Key Highlights of the Preferential Issue
Under the approved proposal, the company will issue:
- Issue Size: ₹21 crore
- Instrument: Fully Convertible Warrants
- Number of Warrants: 10.94 lakh
- Issue Price: ₹192 per warrant
- Face Value: ₹10 per warrant
- Premium: ₹182 per warrant
The warrants will be allotted to promoter Milind Padole through a preferential issue, subject to shareholder and other regulatory approvals.
Loan Conversion to Strengthen Balance Sheet
Instead of receiving cash, the company will adjust the warrant subscription amount against an existing unsecured loan of ₹21 crore previously extended by the promoter.
This debt-to-equity conversion will:
- Reduce outstanding liabilities
- Strengthen the company’s capital structure
- Improve financial flexibility
- Enhance the balance sheet without additional cash outflow
The transaction demonstrates the promoter’s long-term commitment to the company’s growth and financial stability.
Promoter Shareholding to Increase
Upon conversion of the warrants into equity shares, the promoter group’s shareholding is expected to increase from approximately 41.41% to around 46.36% on a fully diluted basis.
The increase reflects greater promoter ownership and confidence in the company’s future prospects.
Regulatory Compliance
The preferential issue has been priced in accordance with Regulation 164 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
The proposal remains subject to:
- Shareholders’ approval through a postal ballot
- Applicable statutory and regulatory approvals
Supporting Future Growth
Affordable Robotic & Automation operates in India’s industrial automation and robotics sector, providing automation solutions to manufacturing industries.
A stronger balance sheet is expected to support the company’s future expansion by providing greater financial flexibility for:
- Business growth
- Technology development
- Capacity enhancement
- Smart manufacturing initiatives
- New project execution
The improved capital structure may also strengthen the company’s ability to pursue opportunities arising from increasing automation across manufacturing industries.