On 30 June 2025, Hella Infra Market Limited (HIML) got itself a fresh valuation report for its Compulsorily Convertible Cumulative Preference Shares (CCPS).
The report does two things:
It tells you how much the company is worth as of that date.
It tells you how many shares were outstanding — both equity and preference
But that was only the beginning.
Because what followed over the next few months created a classic equity vs preference mismatch that every investor must understand.
From the valuation report;
Equity Shares Outstanding (30 June 2025):
3,53,901 equity shares
Multiple preference series existed, all clubbed under CCPS, each with different investors.
The value per CCPS determined by valuer = ₹2,13,408.70 per share.
This price becomes important because all future CCPS issuances between July–Sept 2025 use the same valuation.
| Name of Shareholder | Total No. of Shares (Fully Diluted) | % Shareholding |
|---|---|---|
| Souvik Pukakesh Sengupta | 1,18,000 | 10.58% |
| Aaditya Gajendra Sharda | 1,17,800 | 10.56% |
| Bizzaro Productions LLP | 10,000 | 0.90% |
| Bizzaro Advisory Limited | 58,000 | 5.20% |
| Silverline Home Private Limited | 8,000 | 0.72% |
| Nikhita Aaditya Sharda | 50 | 0.00% |
| Aarti Gajendra Sharda | 50 | 0.00% |
| Sunita Sharda | 50 | 0.00% |
| Gajendra Sharda | 50 | 0.00% |
| Employee Stock Options Available & Free | 65,985 | 5.91% |
| Employee Stock Options Granted and Vested | 12,819 | 1.15% |
| Employee Stock Options Granted and Unvested | 21,362 | 1.91% |
| Shashank Danagachy | 950 | 0.08% |
| Vikram Reddy | 1,250 | 0.11% |
| Other equity investors | 300 | 0.03% |
| Dhruv Agarwala | 700 | 0.06% |
| Accel India V (Mauritius) Limited | 1,65,811 | 14.86% |
| Internet Fund V Pte Ltd | 2,19,559 | 19.68% |
| Nexus Ventures V LTD | 83,162 | 7.45% |
| Evolvence India Fund III Limited | 41,374 | 3.71% |
| Evolvence India Coinvest PCC | 15,550 | 1.39% |
| EIF IV Coinvest PCC (Cell A) | 7,871 | 0.71% |
| Sistema Asia Fund Pte Ltd | 19,705 | 1.77% |
| Sistema Asia Fund India Ventures | 1,606 | 0.14% |
| Foundamental GmbH & Co. KG | 14,763 | 1.32% |
| Foundamental CM Fund GmbH & Co. KG | 5,562 | 0.50% |
| Alteria Capital India Fund I | 1,225 | 0.11% |
| Alteria Capital India Fund II – Scheme I | 331 | 0.03% |
| Alteria Capital India Fund III – Scheme A | 459 | 0.04% |
| Stride Venture India Debt Fund – 1 | 6,175 | 0.55% |
| InnoVen Capital India Private Limited | 1,000 | 0.09% |
| InnoVen Capital India Fund | 3,000 | 0.27% |
| Trifecta Venture Debt Fund II | 5,886 | 0.53% |
| Stride Venture Debt Fund II | 2,906 | 0.26% |
| Trifecta Venture Debt Fund III | 998 | 0.09% |
| Series E1 Investors | 2,100 | 0.19% |
| Series E2 Investors | 5,062 | 0.45% |
| Series E3 Investors | 1,261 | 0.11% |
| Series E4 Investors | 49,130 | 4.40% |
| Series E5 Investors | 26,021 | 2.33% |
| Series E6 Investors | 7,098 | 0.63% |
| Series E7 Investors | 514 | 0.05% |
| Series F1 Investors | 17,733 | 1.59% |
| Total | 11,15,834 | 100.00% |
Between 30 June 2025 and 23 September 2025, the company issued several rounds of CCPS, all at the same valuation: ₹2,13,408.70 per CCPS
| Date | CCPS Issued | Price (₹) |
|---|---|---|
| 30 June 2025 | 915 | 2,13,408.7 |
| 18 July 2025 | 45 | 2,13,408.7 |
| 24 July 2025 | 253 | 2,13,408.7 |
| 5 Aug 2025 | 930 | 2,13,408.7 |
| 30 Aug 2025 | 1,709 | 2,13,408.7 |
| 19 Sept 2025 | 8,246 | 2,13,408.7 |
| 20 Sept 2025 | 2,061 | 2,13,408.7 |
| 22 Sept 2025 | 10,195 | 2,13,408.7 |
| 23 Sept 2025 | 2,061 | 2,13,408.7 |
And later…
89 CCPS issued, again at ₹2,13,408.70.
This means substantial capital was infused into the company after the valuation date.
The company allotted 2,83,120,800 bonus equity shares in the ratio 800:1.
3,53,901 shares
3,53,901 × 800 = 2,83,120,800 (bonus)
Total = 2,83,474,701 (approx)
This means equity shareholders saw their count explode ~800×.
But…
This is the most important part of the story:
The company filed only a Confidential DRHP.
Conversion of CCPS into equity happens only when the UDRHP (public DRHP) is filed.
👉 Preference shares are still preference shares.
👉 They have NOT been converted into equity.
👉 They did NOT receive bonus shares.
So after all the bonus issuance:
This creates a temporary valuation distortion in the unlisted market.
Many investors look only at:
Latest share price
Latest valuation
Total shares after bonus
But here’s the catch…
Massive CCPS issuances
Bonus issue
Any CCPS-to-equity conversion
So if someone sees "bonus-adjusted equity shares" and compares it with "valuation as of 30 June", they will get a wrong valuation per share.
If you buy equity today, you’re buying in a post-bonus world.
If you buy preference shares today, you’re buying a pre-conversion instrument, issued at ₹2.13 lakh per share, which will convert later at a fixed formula.
The two cannot be compared directly.
Understand the class of shares, understand the timing, and never mix valuation dates with bonus events.
Because in unlisted markets, the devil is always in the cap table. The expected valuation of the IPO is around 3-3.5 Billion dollar.
