Affordable Robotic & Automation Ltd (ARAPL) has approved a preferential issue of fully convertible warrants to its promoter, a move aimed at converting promoter debt into equity-linked capital and strengthening the company’s financial position. The Board of Directors has approved the issuance of 10.94 lakh fully convertible warrants to promoter, Managing Director and Chief Executive Officer Melind Padole. The warrants will be issued at a price of ₹192 each, including a premium of ₹182 per warrant, taking the total value of the issue to approximately ₹21 crore.
The proposed allotment will be made against the conversion of an unsecured loan of ₹21 crore extended by the promoter to the company. The issue price has been determined in accordance with the pricing guidelines prescribed under Regulation 164 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
The proposal is subject to approval from shareholders through a special resolution by postal ballot, along with other statutory and regulatory approvals. The warrants allotted to the promoter will also be subject to the lock-in provisions applicable under SEBI regulations.
The company said the conversion of the outstanding loan into equity-linked capital is expected to improve its balance sheet by reducing debt obligations and strengthening its capital base. The move is also expected to improve leverage and debt coverage ratios, providing greater financial flexibility to support future expansion plans. Following the conversion of the warrants into equity shares, the promoter group’s shareholding is expected to increase from 41.41 percent to around 46.36 percent on a fully diluted basis, while the public shareholding will reduce accordingly.
Commenting on the development, Melind Padole, Managing Director and Chief Executive Officer of ARAPL, said the company sees significant long-term opportunities in India’s fast-growing industrial automation sector as manufacturers continue to invest in robotics, smart factories and advanced manufacturing technologies.
He said the conversion of promoter debt into equity reflects the promoter’s long-term commitment to the company and its growth strategy. According to him, a stronger capital structure and lower debt will improve the company’s ability to invest in new technologies, strengthen execution capabilities and pursue opportunities across key manufacturing industries. ARAPL believes the transaction will provide a solid financial foundation for sustainable growth while enhancing shareholder value over the long term.
Established in 2005 and headquartered in Pune, Affordable Robotic & Automation Ltd. is a provider of turnkey industrial automation solutions serving automotive, engineering, manufacturing and government sectors. The company offers a wide range of automation systems, including robotic welding cells, automated assembly lines, robotic inspection systems and automated parking solutions.
With manufacturing facilities spread across approximately 350,000 square feet and a workforce of more than 400 employees, ARAPL serves customers across India, China and other Asian markets. The company continues to expand its capabilities to meet the increasing demand for automation solutions driven by India’s manufacturing growth and the government’s focus on advanced industrial technologies under the Make in India initiative.
