Veer Global gets BSE nod for preferential issue, weighs rights issue
Nano-cap's board meets June 22 to convert ₹6.8 cr debt into equity at ₹85/share and evaluate a fresh rights offer. The move comes amid a ₹22 cr GST dispute and falling revenue.
— 1 earlier story on Veer Global Infraconstruction Ltd. →What's new
- BSE in-principle approval received for preferential issue of 8 lakh shares at ₹85 each.
- Board to consider converting ₹6.8 cr unsecured loans into equity on June 22.
- Company evaluating a new rights issue, disclosed for the first time.
Why this matters
The preferential issue cleans up a liability but the new rights issue signals further dilution. With a ₹22 cr GST dispute (61% of net worth) and revenue down 49.5%, this capital raising looks like a distress move, not growth funding.
What we're watching
- Terms of the rights issue: size, pricing, and purpose.
- Whether the ₹22 cr GST dispute gets resolved or escalates.
- Impact on existing shareholders from potential dilution.
The full read
Veer Global Infraconstruction has cleared one regulatory hurdle. BSE has given in-principle approval for its preferential issue: converting ₹6.8 crores of unsecured loans into 8 lakh shares at ₹85 each. The board meets June 22 to formally approve the allotment. More consequential, perhaps: the same meeting will evaluate a fresh rights issue, disclosed here for the first time. That's a new capital raise on top of a debt conversion, for a company already carrying a ₹22.12 crore GST dispute (61% of net worth), negative revenue growth, and a P/E of 143. This isn't growth capital; it's repair capital. Existing investors should watch the rights issue terms closely: dilution is coming.
Questions answered
- What is the size of the preferential issue?
- ₹6.8 crores of unsecured loans will be converted into 8,00,000 equity shares at ₹85 per share.
- When is the board meeting?
- The board meeting is scheduled for June 22.
- Why is the company raising capital?
- The company faces a ₹22 cr GST dispute (61% of net worth) and trailing revenue is down 49.5%. Funds may be needed for working capital or dispute resolution.
- How does this affect existing shareholders?
- The preferential issue is a debt conversion that does not raise new cash, but the proposed rights issue could dilute existing holders if priced at a discount.
Story so far
All notes on VGIL →- 18 Jun 2026 · 6:23 PM IST Veer Global gets BSE nod for preferential issue, weighs rights issue
- 19d ago Veer Global's auditor flags ₹22 cr GST dispute and ₹90 lakh bank default