VL E-Governance & IT Solutions Okays Allotment of 5.34 Cr Warrants On A Preferential Basis Worth Rs 400.99 Cr

With great pleasure, VL E-Governance & IT Solutions Limited (VL E-Governance) announces the issuance of the preferential allotment of 5.34 crore warrants through a private placement. The allocation of 5.34 crore fully convertible warrants, each convertible into one equity share with a face value of Rs. 10/-each, to the non-promoter category on a preferential basis was authorised by the Board on Thursday. Following the conversion of warrants, the Board authorised the distribution of 25.00 lakh equity shares.

This strategic allocation of Rs. 400.99 crore is intended to strengthen VL E-Governance's financial standing and give it the boost it needs to carry out its ambitious projects, which include high-tech advancements in the satellite, aerospace, defence, and aviation industries as well as extensive e-Government initiatives.

VL E-Governance & IT Solutions said the above initiative underscores its commitment to strengthening its capital structure and accelerating its growth trajectory.

Mr. Dinesh Nandwana, Chairman & Managing Director of VL E-Governance, said: "This allotment represents a significant milestone in our journey towards achieving long-term growth and operational excellence. The funds raised will enable us to invest in cutting-edge technologies and expand our footprint in critical and emerging sectors including aviation, aerospace, defense, satellite & e-Governance sectors."

"The issuance of warrants is in line with the company's vision to create value for stakeholders by exploring growth opportunities and leveraging its expertise in the e-Governance & aviation, aerospace, defense, satellite domain," he further added.
Following the conversion of the warrants, the equity shares will be listed on the National Stock Exchange of India Limited and the BSE Limited.

"Consequent to the aforesaid allotment of 25,00,000 Equity Shares, the Issued, subscribed and Paid-up equity share capital of the Company stands increased from Rs 1,05,95,13,290/- (i.e. 10,59,51,329 equity shares of Rs 10/- each) to Rs. 1,08,45,13,290/- consisting of 10,84,51,329 equity shares of Rs. 10/- each. The equity shares so allotted shall rank pari-passu with the existing equity shares of the Company in all respects," said VL E-Governance & IT Solutions in a stock exchange filing.

E-governance services, IT/ITES System Integration services, B2B trade, and IT/ITES equipment trading are all part of VL E-Governance & IT Solutions Limited's operations. One of the largest e-Government players in India, the company offers end-to-end services and systems integration for a range of e-Government initiatives. Additionally, the company has completed international projects for the Philippine government, such as digitising land records.