Valor Estate denies dilution rumors, clarifies share allotment impact

Valor Estate Limited, in a November 18, 2025 announcement, addressed what it called "malicious and factually incorrect rumors" regarding a proposed allotment of 6.45 crore Compulsorily Convertible Preference Shares (CCPS) to Konark Realtech Pvt. Ltd. The company refuted claims of a 12-13% equity dilution, stating the actual dilution would be approximately 0.66% of existing paid-up capital, with calculations made in accordance with SEBI ICDR Regulations. It further clarified that the ₹70 crore of redeemable preference shares are not being converted into equity valued at ₹1,000 crore, as alleged in the rumors.

The company explained the CCPS issuance is a settlement of accrued profit/share of profit due to Konark Realtech Pvt. Ltd., a former partner that amalgamated into Valor Estate Limited in 2016. The board approved settlement in shares instead of cash to conserve funds for ongoing projects, emphasizing this as a liability discharge.

Valor Estate asserted there is no conversion benefit, as the conversion ratio is governed strictly by SEBI ICDR. The CCPS will convert into equity shares at a price not lower than that determined under SEBI ICDR, with an independent professional firm certifying a pre-fixed conversion value of ₹201.65 per share, representing an almost 44% premium over the existing market price. The company has filed a complaint with the Cyber Crime Cell regarding these fabricated messages.