Ramkrishna Forgings to raise Rs94.30 crore via Preferential Issue; stock jumps ~2%

12 Sep 2022 , 03:16 PM

Ramkrishna Forgings Limited, a prominent producer of rolled, forged, and machined products, has approved an Rs94.30 crore fund raise through a preferential issue of 46 lakh warrants.

These warrants shall be convertible into equivalent equity shares of Rs2 each at a price of Rs205 per warrant.

Following the issuance of these warrants, the company will get Rs23.60 crore within the current year, while the remaining Rs70.70 crore will be received throughout the next 18 months from the date of warrant allotment.

Under the issue, company’s Managing Director and Promoter Naresh Jalan will be issued 30,00,000 warrants worth Rs61.50 crore, being the highest share in preferential issue. Eastern Credit Capital Private Limited will infuse Rs20.50 crore in exchange for 10,00,000 warrants of the company.

While Non-Promoters include Lalit Kumar Khetan, Wholetime Director & CFO, who will subscribe to 1,00,000 warrants worth Rs2.050 crore, and Shyama Wealth Management Private Limited, who will subscribe to 5,00,000 warrants worth Rs10.25 crore.

Following the issuance of warrants, the promoter shareholding will increase from 46.27% to 47.41%, stated the company.

At around 3.19 PM, Ramkrishna Forgings was trading at Rs207.40 up by 2.09% from its previous closing of Rs203.15 on the BSE. The scrip touched intraday high and low of Rs210.95 and Rs203.40 respectively.

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