VL E-Governance & IT Solutions has approved the allotment of 5.34 crore warrants on a preferential basis to the non-promoter category by way of a private placement to raise Rs 401 crore.

The fundraising will reinforce the company’s financial position and provide the necessary impetus for the execution of projects, including large-scale e-Governance initiatives and high-tech developments in aviation, aerospace, defence, and satellite sectors.

Key Highlights of the Preferential Allotment:

The company will allot 25 lakh fully paid-up equity shares on conversion of the warrants.

Dinesh Nandwana, Chairman and Managing Director, VL E-Governance said the funds raised will enable the company to invest in cutting-edge technologies and expand its footprint in critical and emerging sectors.

The issuance of warrants is in line with the company’s vision to create value for stakeholders by exploring growth opportunities and leveraging the company’s expertise, he added.

The equity shares issued upon conversion of the warrants so issued will be listed on the exchange.