Ramkrishna Forgings Ltd approves fund raising of Rs. 94.3 crores

Ramkrishna Forgings Limited, one of the leading suppliers of rolled, forged and machined products has approved a fund raise of Rs. 94.3 Crores through a preferential issue of 46 lakhs warrants convertible into equivalent equity share 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 of 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-Promoter / Wholetime Director & CFO - 1,00,000 - Rs. 2.050 crores

Commenting on the fund raise Mr. Naresh Jalan, Managing Director, Ramkrishna Forgings Limited said: "We are pleased to announce that the company has approved a fund raise of Rs. 94.3 Crores through the issuance of 46 Lakhs warrants convertible into equivalent equity shares of Rs. 2 each at a price of Rs. 205 per warrant. 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."

Source : Equity Bulls

Keywords

RamkrishnaForgings FundRaising PreferentialIssue ConvertibleWarrants