What Is the Fund Raise?
The company is issuing 60,00,000 fully paid-up equity shares with a face value of ₹10 each at a premium of ₹96 per share, totaling an issue price of ₹106 per share. This preferential issue, aggregating to ₹63.60 crore, is being made to six non-promoter investors including Kesar Tracom India LLP and Kuber Equity Services LLP. The allotment remains subject to shareholder approval at the upcoming Annual General Meeting scheduled for September 29, 2026.
This move will expand the company's equity base, with the total number of shares increasing from approximately 2.15 crore to 2.75 crore shares.
Strategic Rationale
- Facilitates a significant capital infusion to support long-term growth and core operational requirements
- Expands the public shareholding from 25.02 percent to 41.36 percent to enhance market liquidity
- Increases the authorized share capital to ₹30 crore to provide flexibility for future corporate actions
- Aligns with the company internal compliance strengthening following recent regulatory fine payments
- Supports the re-appointment of core leadership including the CMD and CFO for five-year terms
Business Overview
Based in Ratlam, Madhya Pradesh, the company specializes in the manufacturing of Low Relaxation Pre-Stressed Concrete strands and wires. These high-tensile steel products are critical components in large-scale infrastructure projects including bridges, metro rail systems, and flyovers. The company operates manufacturing units in Ratlam and serves both domestic and international markets.
With a track record spanning over two decades, the management has developed expertise in financial management and production automation. The firm recently transitioned to a public listed company, reflecting its scaling ambitions within the iron and steel products sector.
Financial Context
The company reported an annual operating revenue of ₹331.04 crore for the recent fiscal year, supported by a net profit of ₹12.12 crore. Despite a slight annual revenue dip of 5.52 percent, net profit growth remained positive at 10.67 percent. The stock currently trades at a price-to-earnings ratio of 19.08, which is lower than the industry average P/E of 34.04.
Furthermore, the board has rewarded shareholders with a dividend of ₹0.50 per share for FY 2025-26, fixing the record date for September 22. The company maintains a Piotroski score of 5, indicating stable financial health.
