Tirupati Forge to raise ₹21.46 crore via preferential warrants

1 min read Updated on 08 Jul 2026, 08:15 AM

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Riya DScanX News Team

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Tirupati Forge Limited will hold an EGM on July 31, 2026, to approve the issuance of 37,00,000 convertible warrants worth ₹21.46 crore to promoters. The warrants, priced at ₹58 each, include a premium of ₹56 and are convertible within 18 months. The issue will increase promoter holding to 51.14%.

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Tirupati Forge Limited has convened an Extraordinary General Meeting (EGM) on July 31, 2026, to seek shareholder approval for the issuance of 37,00,000 convertible warrants on a preferential basis. The company aims to raise ₹21.46 crore through this issuance, which will be directed towards promoters and the promoter group. The funds raised will be utilized for working capital requirements, the purchase of land, plant and machinery, and other general corporate purposes.

The board proposes to issue the warrants at a price of ₹58 each, comprising a face value of ₹2 and a premium of ₹56. The pricing is determined in accordance with Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and is not less than the higher of the 90-day and 10-day volume weighted average price (VWAP) preceding the relevant date. The 90-day VWAP was ₹47.21, while the 10-day VWAP was ₹57.75.

The warrants are convertible into one fully paid-up equity share each, with an exercise period of 18 months from the date of allotment. The proposed allottees include Hiteshkumar Gordhanbhai Thummar, Bhargvi Manojbhai Thummar, and Chetna Mukeshbhai Thumar. The allotment is subject to a lock-in period as specified under the SEBI ICDR Regulations.

Name of Investor	Category	No. of Convertible Warrants to be allotted
Hiteshkumar Gordhanbhai Thummar	Promoter	9,25,000
Bhargvi Manojbhai Thummar	Promoter	13,87,500
Chetna Mukeshbhai Thumar	Promoter Group	13,87,500
Total		37,00,000

Post-issue, the promoter holding is expected to increase to 51.14% from the current 49.75%, assuming full conversion of the warrants into equity shares. The company stated that the preferential issue will not result in any change in the management or control of the company. The equity shares issued upon conversion will rank pari-passu with existing shares, including dividend rights.

The remote e-voting facility will commence on July 28, 2026, and conclude on July 30, 2026. Shareholders recorded in the register of members or beneficial owners as of the cut-off date, July 24, 2026, will be entitled to vote. The company has engaged National Securities Depository Limited (NSDL) to facilitate the e-voting process.

Historical Stock Returns for Tirupati Forge

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.42%	+3.37%	+53.08%	+95.33%	+58.34%	+1,434.89%

How will the increase in promoter holding to 51.14% influence future strategic decisions and governance policies?

What specific capital expenditures or expansion projects are planned for the funds allocated to land and machinery?

How might the market react to the dilution of equity over the next 18 months as warrants are converted?

Q4FY26 and FY26 Financial Performance

For the fourth quarter of FY26, revenue dipped to INR 430.3 Mn compared to INR 492.5 Mn in Q3FY26, attributed to headwinds in the traditional business due to geopolitical tensions. Profit After Tax (PAT) for Q4FY26 declined to INR 15.2 Mn from INR 20.2 Mn in the preceding quarter. However, adjusted PAT stood at INR 62.95 Mn versus INR 78.55 Mn, after accounting for higher depreciation and interest costs related to the commissioning of the new defence plant and solar unit.

On a yearly basis, the company reported a significant increase in financials. FY26 revenue rose to INR 1,659.4 Mn from INR 1,162.9 Mn in FY25, driven by a growing order book and strong demand momentum in the US market. PAT for FY26 stood at INR 62.9 Mn compared to INR 78.5 Mn in FY25. The moderation in profitability was primarily due to upfront investments in the new defence manufacturing facility and solar power plant.

Fiscal Year	Total Income (In INR Mn)	PAT (In INR Mn)
FY25	1162.90	78.5
FY26	1659.40	62.9

Defence Project Update

The company announced that its defence plant has been successfully commissioned, with hot trials completed and balance trials on track for completion by Q1 FY27. Trial production of shell bodies has been successfully completed as per required specifications. Commercial production is expected to commence in Q2 FY27, with customer discussions at advanced stages.

The defence vertical is expected to generate annual revenues of approximately INR 2,500 Mn at full utilization, with revenue contribution beginning in FY27 and the full-year impact visible from FY28 onwards. EBITDA margins from the defence vertical are expected to be upwards of 40%. Furthermore, the commissioning of the solar power plant is expected to deliver annualized cost savings of approximately INR 20 Mn upon the commencement of commercial production at the defence facility.

Historical Stock Returns for Tirupati Forge

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.42%	+3.37%	+53.08%	+95.33%	+58.34%	+1,434.89%

How might Tirupati Forge's customer negotiations for the 155 MM M107 shell body progress, and which defence procurement agencies or OEMs are most likely to be the initial off-takers when commercial production begins in Q2 FY27?

Given that the defence vertical is projected to contribute ~INR 2,500 Mn in annual revenue at full utilization versus FY26 total revenue of ~INR 1,659 Mn, how will the company manage working capital and balance sheet stress during the ramp-up phase in FY27-FY28?

With geopolitical tensions already impacting the traditional forging business in Q4FY26, how exposed is Tirupati Forge's US and European revenue base to potential trade policy shifts such as tariffs or supply chain realignment?