Man Industries will raise Rs 300 crore through a preferential allotment of convertible warrants and equity shares. The company has scheduled an Extraordinary General Meeting (EGM) on June 25 to get the necessary approvals from investors.
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As per the company statement, the proposal includes the issuance of 12,19,512 convertible warrants to Man Finance, which is a promoter group entity, at Rs 328 each. The total value of the transaction will be Rs 39.99 crore.
Details of proposal
Man Industries is issuing 79,26,822 equity shares, having a face value of Rs 5 each, at a price of Rs 328 per share to non-promoters. The total value of the transaction stands at Rs 259.99 crore.
The company has provided the list of 26 non-promoters who are purchasing the shares of Man Industries. Major investors in the list include B Arunkumar Capital and Credit Service, Ashish Kacholia, Capri Global Holdings, and RBA & Finance Investment Co.
Purpose of capital raise
The company has said in the statement that the purpose of raising capital is to support its capital expenditure in the company’s expansion projects in Saudi Arab and Jammu. The company is also looking to support its working capital needs and strengthen its balance sheet through fundraising.
“The proposed capital raise marks a significant step toward reinforcing our growth strategy. It will enable us to enhance execution capabilities, support strategic expansion, and continue delivering value to our stakeholders.”, Nikhil Mansukhani, Managing Director of Man Industries, said in a company statement.
The company also added that the fundraise will support the company’s long-term growth and its strategic initiatives.
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