Why is Milkfood raising funds?

The company hasn't specified the intended use of proceeds from the ₹6.60 cr warrant issue.

Who are the allottees and what do they get?

MD Sudhir Avasthi and President Deepankar Barat each get 11 lakh warrants convertible into equity shares at ₹30 per warrant.

How much dilution will this cause?

The issue adds about 7.92% fully diluted equity, with each allottee holding a potential 3.96% stake.

When can the warrants be converted?

The warrants have a conversion period of 18 months from the date of allotment, subject to full payment.

What is the conversion price?

Each warrant is priced at ₹30, including a premium of ₹25 over the face value of ₹5 per share.

When will shareholders vote on this?

An extraordinary general meeting is scheduled for July 27, 2026 to seek shareholder approval.

Dairy Products · Micro cap

Milkfood raises ₹6.6 cr via warrants to MD, president

Two insiders get 11 lakh warrants each, convertible in 18 months, adding 7.9% dilution. No use of proceeds disclosed.

— 2 earlier stories on Milkfood Ltd. →

MLKFOOD By Tipsheet Editorial 30 Jun 2026 · 12:48 PM IST Verify on BSE · NSE

Mkt cap₹182 cr

ROE2.56%

Debt / eq.0.64

₹6.60 cr Preferential warrant issue to key managerial personnel

What's new

Board approves warrant issue to MD Sudhir Avasthi and President Deepankar Barat.
Each gets 11 lakh warrants, convertible at ₹30 within 18 months, for ₹6.6 cr total.
Shareholder approval needed at EGM on July 27, 2026.

Why this matters

The raise is material for a nano-cap dairy firm with recent auditor-flagged profits and liquidity constraints, but the absence of a stated use of proceeds and the insider-allottee structure raise governance questions. Dilution of nearly 8% could pressure equity.

What we're watching

Use of proceeds disclosure or lack thereof at EGM.
Shareholder vote outcome and any opposition.
Whether this signals further capital needs given negative net profit in latest quarter.

The full read

Milkfood's board has approved a ₹6.60 cr preferential warrant issue to its managing director and president, diluting existing shareholders by 7.9%. The move comes after auditor-flagged accounting errors and an asset-sale-driven profit; the company hasn't said what it will do with the money. For a nano-cap with ₹182 cr market cap and a ₹8 cr net loss in the latest quarter, the insider-allottee structure and lack of clarity are red flags. Shareholders vote on July 27.

Questions answered

Why is Milkfood raising funds?: The company hasn't specified the intended use of proceeds from the ₹6.60 cr warrant issue.
Who are the allottees and what do they get?: MD Sudhir Avasthi and President Deepankar Barat each get 11 lakh warrants convertible into equity shares at ₹30 per warrant.
How much dilution will this cause?: The issue adds about 7.92% fully diluted equity, with each allottee holding a potential 3.96% stake.
When can the warrants be converted?: The warrants have a conversion period of 18 months from the date of allotment, subject to full payment.
What is the conversion price?: Each warrant is priced at ₹30, including a premium of ₹25 over the face value of ₹5 per share.
When will shareholders vote on this?: An extraordinary general meeting is scheduled for July 27, 2026 to seek shareholder approval.

Mentioned: Sudhir Avasthi · Deepankar Barat · ₹6.60 cr

Primary source BSE · NSE · Tijori

An independent reading of the company's own disclosure — the primary filing above is the final word.

Company snapshot

Milkfood Ltd.

Dairy Products

₹184 cr

Latest quarter · Sep 2025

Sales₹74 cr

Net profit−₹8 cr

Op. margin−3.1%

EPS−₹3.22

Strength & growth

Debt / equity0.64×

Current ratio1.19×

Sales CAGR+1.0%

EPS CAGR+41.4%

Story so far

All notes on MLKFOOD →

30 Jun 2026 · 12:48 PM IST Milkfood raises ₹6.6 cr via warrants to MD, president
45d ago Milkfood's auditor finds accounting errors behind its reported profit
45d ago Milkfood's ₹44 cr profit is mostly an asset sale. The auditor isn't convinced.