Cubex Tubings board approves ₹75 crore preferential issue of warrants
- Board approved preferential issue of 50 lakh convertible warrants at ₹150 each
- Total fundraise amount stands at ₹75 crore from five identified investors
- Proceeds to fund vacuum melting furnace for specialized alloy production
- Promoter holding expected to rise from 44.42% to 50.47% post-conversion
*this image is generated using AI for illustrative purposes only.
Cubex Tubings Limited has approved a preferential issue of up to 50,00,000 convertible warrants to raise ₹75 crore. The funds will finance a vacuum melting furnace to expand manufacturing capabilities for specialized alloys.
The Board of Directors approved the issuance on October 14, 2026. The warrants will be issued at ₹150 per security, comprising a face value of ₹10 and a premium of ₹140. This price is higher than the valuation of ₹142.31 determined by Saksham Valuer Private Limited. The issue is subject to shareholder approval and regulatory clearances.
Fundraising structure and investors
The company will issue convertible equity shares through five identified investors. Promoter entity Cubex Securities Ltd is subscribing to 33,90,000 warrants, accounting for ₹50.85 crore of the total raise. Non-promoter investors include Ajeet Modi, H & A Unicorns, Ruchas Ventures, and Payal Tandan Shrivastava.
| Investor | Category | Warrants | Investment (₹) |
|---|---|---|---|
| Cubex Securities Ltd | Promoter | 33,90,000 | 50,85,00,000 |
| Ajeet Modi | Non-Promoter | 6,00,000 | 9,00,00,000 |
| H & A Unicorns | Non-Promoter | 4,05,000 | 6,07,50,000 |
| Ruchas Ventures | Non-Promoter | 4,05,000 | 6,07,50,000 |
| Payal Tandan Shrivastava | Non-Promoter | 2,00,000 | 3,00,00,000 |
Use of proceeds
The entire proceeds from the issue will be utilized for the procurement and installation of a vacuum melting furnace at the company's new manufacturing facility. This includes land, civil, electrical works, and balancing equipment. The furnace will enable the production of ferrous-based special steels (titanium, nickel-based, chrome-based) and non-ferrous metals (oxygen-free copper, beryllium copper, zirconium/chrome alloys). These products target sectors such as nuclear, aerospace, defence, oil and gas, and heavy engineering.
The company stated it already possesses downstream processing equipment. The new furnace will complement existing infrastructure to strengthen manufacturing capabilities for these specialized industries.
What the numbers show
The promoter group's shareholding is set to increase significantly upon full conversion. Cubex Securities Ltd holds 13.04% currently but will hold 28.00% post-conversion. Consequently, the total promoter and promoter group holding will rise from 44.42% to 50.47%, crossing the 50% threshold. Public shareholding will dilute from 55.58% to 49.53%. The warrants must be converted within 18 months from allotment, with 25% payment upfront and the balance within the tenure.
Historical Stock Returns for Cubex Tubings
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +5.00% | +33.99% | +160.53% | +124.84% | +109.00% | +730.04% |
How will the promoter holding crossing the 50% threshold impact the company's corporate governance structure and minority shareholder rights?
What is the projected timeline for the vacuum melting furnace to become operational, and how does this align with current demand cycles in the aerospace and defence sectors?
How does Cubex Tubings' entry into specialized alloy production compare with existing competitors in terms of cost efficiency and technological barriers?
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