Ramkrishna Forgings said that its board has approved a fund raise of Rs 94.3 crore through a preferential issue of 46 lakh warrants convertible into equivalent equity share of Rs 2 each at Rs 205 per warrant to promoters and non-promoters.
The company will issue 10 lakh warrants to Eastern Credit Capital (promoter), 30 lakh warrants to Naresh Jalan (promoter/managing director), 5 lakh warrants to Shyama Wealth Management (non-promoter) and 1 lakh warrants to Lalit Kumar Khetan (non-promoter/wholetime director & CFO).
Upon allotment of these warrants, the company will receive Rs 23.60 crore during the year and balance Rs 70.70 crore will be received within the next 18 months from the date of allotment of warrants.
Commenting on the fund raise, Naresh Jalan, managing director, Ramkrishna Forgings, said: The promoters will be issued 40 lakh warrant out of the total fund raise which will increase their shareholding from present level of 46.27% to 47.41% upon conversion of warrants which demonstrates their confidence on business growth prospects. Majority of the funds raised will be utilized by the company to reduce its debt, which is in line with the company's capital allocation policy.
Ramkrishna Forgings is primarily engaged in manufacturing and sale of forged components of automobiles, railway wagons & coach and engineering parts.
Also Read
The company reported a 92% jump in standalone net profit to Rs 47.26 crore on a 56% rise in revenue from operations to Rs 650.75 crore in Q1 FY23 over Q1 FY22.
The scrip advanced 2.07% to end at Rs 207.35 on the BSE today.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
