Yash Highvoltage announces ₹151 Crore Preferential Equity Raise

Yash Highvoltage Limited ("Yash" or the "Company"), a leading manufacturer of transformer bushings for the power generation, transmission and distribution sector, today announced the approval of a preferential issue aggregating up to approximately ₹151 crore, subject to shareholder and other requisite statutory and regulatory approvals.

The Board has approved the issuance of up to 12,62,131 equity shares and 8,32,177 convertible warrants, each warrant convertible into one equity share of the Company, at an issue price of ₹721 per security, aggregating up to approximately ₹151 crore.

The proposed issue has attracted participation from a distinguished group of institutional investors, family oƯices and long-term and reputed investors, reflecting strong confidence in the Company's business model, technological capabilities, and long-term growth strategy.

The proposed proceeds from the issue are intended to support the Company's next phase of growth through expansion of manufacturing and testing infrastructure, enhancement of existing facility's capabilities, and strengthening of its position in the power equipment ecosystem.

A key focus area of the proposed investment is the expansion of the Company's ResinImpregnated Paper ("RIP") bushing manufacturing facility from the originally envisaged 245 kV range to the 550 kV category. This strategic initiative is expected to position Yash among a select group of manufacturers capable of serving the extra-high voltage transmission segment and significantly expand its addressable market.

The proposed investments will support the establishment of advanced assembly and testing infrastructure, including high-voltage testing facilities and specialized equipment required for the development, validation and qualification of 550 kV RIP bushings. The Company also plans to invest in engineering, product development and certification capabilities to meet global standards and address opportunities across domestic and international markets.

In addition, Yash intends to undertake a brownfield expansion of its existing Oil-Impregnated Paper ("OIP") bushing manufacturing facility to cater to growing demand from transformer manufacturers, utilities and power infrastructure developers. The proposed investments are expected to enhance manufacturing scale, broaden the Company's product portfolio and strengthen its technological capabilities.

India's power generation and transmission sector is witnessing significant investments driven by renewable energy integration, grid modernization initiatives and rising electricity demand owing to rapid industrialization and urbanization, data centre and EV infrastructure among other developments. With these increasing investments, the Company believes it is well positioned to capitalize on long-term industry tailwinds and strengthen its presence across domestic and export markets.

Mr. Keyur Shah, Chairman & Managing Director, Yash Highvoltage Limited, said: "The proposed fund raise marks an important milestone in Yash Highvoltage's growth journey. We are grateful for the confidence shown by investors, whose support reinforces our conviction in the long-term opportunities emerging within the power generation and transmission sector."

"The proposed capital raise of approximately ₹151 crore through a combination of equity shares and warrants will provide the Company with the flexibility to execute its strategic growth initiatives while maintaining a prudent capital structure. Our planned expansion into the 550 kV RIP bushing segment represents a transformational opportunity for the Company. The proposed investments will strengthen our manufacturing and testing capabilities, expand our product portfolio and enable us to participate in a significantly larger share of the high-voltage and high-current power equipment market."

"Combined with the expansion of our OIP bushing manufacturing capacity and continued investments in technology, engineering and product development, we believe these initiatives will create a strong platform for sustainable long-term growth, enhance our competitive positioning and deliver long-term value for all stakeholders."

Transaction Advisor

Monarch Networth Capital Limited acted as the Exclusive Financial Advisor and Sole Investment Banker to Yash Highvoltage Limited for the proposed ₹151 crore preferential equity raise.

Source : Equity Bulls

Keywords

YashHighvoltage PreferentialIssue FundRaising