Digikore Studios Proposes ₹9 Cr Promoter Loan Conversion into Equity at ₹51.13/Share
Digikore Studios has issued a notice for its 26th AGM on September 30, 2026, seeking shareholder approval to convert ₹9.00 crore of outstanding promoter debt into equity. The company plans to issue up to 17,60,219 equity shares at ₹51.13 per share to promoter Abhishek Rameshkumar More, which represents 50% of the current market capitalization of ₹18 crore. Additionally, the authorized share capital will be increased from ₹15 crore to ₹18 crore, while an earlier expansion resolution is being withdrawn. E-voting will take place between September 27 and September 29, 2026, with a cut-off date of September 23, 2026.
high confidence
What changedThe company has initiated shareholder approval to convert ₹9 crore of outstanding promoter debt into 17.6 lakh equity shares at ₹51.13 per share.
Why it mattersThe conversion reduces debt by ₹9 crore from current borrowings of ₹54 crore (approx. 16.7% reduction), strengthening net worth and lowering interest costs at a price premium to the market.
Debt Conversion Amount: Rs. 9,00,00,000Issue Price per Share: Rs. 51.13Shares to be Allotted: 17,60,219Conversion as % of Market Cap: ~50%Debt reduction vs total debt: ~16.7%
📅 Short termThe issue price of ₹51.13 provides positive sentiment relative to the prevailing market price of ₹40.10, with focus shifting to shareholder voting outcomes by September 30, 2026.
📈 Long termDe-leveraging the balance sheet via equity conversion lowers financial risk (D/E decreases from 1.24) and aligns promoter commitment with long-term business performance.
⚠ Risk flags
- Dilution for existing non-promoter public shareholders
- Related-party transaction involving the Managing Director
👀 What to Watch
Track the AGM voting results on September 30, 2026, and monitor stock exchange in-principle approval for the preferential issue along with subsequent debt-reduction disclosures.
