Ramkrishna Forgings Limited, a leading supplier of rolled, forged and machined products, has approved a fundraising of Rs. 94.3 Crores through a preferential issue of 46 lakhs of warrants convertible into equivalent shares of Rs.2 each at a price of Rs. 205 per warrant to promoters/non-promoters. Upon allotment of these warrants, the Company will receive Rs. 23.60 Crores during the year and balance Rs. 70.70 Cores will be received within the next 18 months from the date of allotment warrants.
Eastern Credit Capital Private Limited (Promoter) – 10,00,000 – Rs. 20.50 crores
Mr. Naresh Jalan Promoter / Managing Director – 30,00,000 – Rs. 61.50 crores
Shyama Wealth Management Private Limited – Non promoter – 5,00,000 – Rs. 10.25 crores
Mr. Lalit Kumar Khetan – Non-Developer / Full Time Director & CFO – 1,00,000 – Rs. 2,050 crores
Commenting on the fundraising, Mr. Naresh Jalan, Managing Director of Ramkrishna Forgings Limited said, “We are pleased to announce that the company has approved a fundraising of Rs. 94.3 Crores through the issuance of 46 Lakhs warrants convertible into equivalent shares of Rs. 2 each at a price of Rs. 205 per warrant Promoters will receive 40 lakh warrants from the total fundraising, which will increase their stake from the current level of 46.27% to 47.41% when converting mandates, which demonstrates their confidence in the company’s growth prospects. The majority of the funds raised will be used by the company to reduce its debt, which is in line with the company’s capital allocation policy. »
Source: Stock market bulls