Amic Forging , a prominent player in the forging industry, has announced a significant capital raising initiative through a preferential issue of equity shares and warrants. The company's Board of Directors has approved a comprehensive plan to raise approximately Rs 50 crore, aimed at strengthening its financial position and supporting future growth strategies.

Equity Share Issuance

The company plans to issue 260,425 fully paid-up equity shares at a price of Rs 1,536.00 per share, which includes a substantial premium of Rs 1,526.00 over the face value of Rs 10.00. This issuance is expected to raise Rs 40.00 crore from 27 non-promoter investors through a preferential allotment on a private placement basis.

Warrant Issuance

In addition to the equity shares, Amic Forging will also issue 65,000 convertible warrants at the same price of Rs 1,536.00 per warrant. This move is set to raise an additional Rs 9.98 crore from both promoter and non-promoter categories. These warrants come with a conversion option, allowing holders to convert them into equity shares within 18 months from the date of allotment.

Key Details of the Preferential Issue

Investor Allocation for Warrants

Regulatory Approval and Next Steps

The preferential issue is subject to necessary regulatory approvals, including shareholder consent. To facilitate this, Amic Forging has scheduled an Extraordinary General Meeting (EGM) on November 5, 2025, where shareholders will be asked to approve these proposals.

This strategic move by Amic Forging demonstrates the company's proactive approach to capital management and its commitment to creating long-term value for its shareholders. The successful completion of this preferential issue is expected to provide the company with the financial flexibility needed to pursue its growth objectives in the competitive forging industry.

Amic Forging Limited, a prominent player in the forging industry, has announced a significant move to bolster its financial position. The company's Board of Directors has given the green light to raise funds up to Rs. 50.00 crores through a Qualified Institutional Placement (QIP) of equity shares and other eligible securities.

Board Meeting Details

The decision was made during a board meeting held on September 24, which commenced at 6:35 PM and concluded at 7:15 PM. This strategic move is subject to shareholder and regulatory approvals, highlighting the company's commitment to transparency and compliance with regulatory requirements.

Fundraising Specifics

According to the company's disclosure, the fundraising will involve the issuance of:

• Equity shares with a face value of Rs. 10.00 each
• Other convertible securities (including warrants)
• Or a combination thereof

The securities will be issued in one or more tranches, providing flexibility in the fundraising process. The maximum amount to be raised is set at Rs. 50.00 crores, inclusive of any premium that may be fixed on the securities.

Regulatory Compliance

The QIP will be conducted in accordance with Chapter VI of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. Additionally, it will comply with Section 42 and other applicable provisions of the Companies Act, 2013, ensuring adherence to all relevant legal frameworks.

Next Steps

To move forward with this initiative, Amic Forging Limited will be taking the following steps:

1. Seeking shareholder approval through a postal ballot
2. Obtaining necessary regulatory and statutory approvals

Market Implications

This fundraising initiative through QIP suggests that Amic Forging Limited is looking to strengthen its capital base, which could potentially be used for various purposes such as expansion, debt reduction, or working capital requirements. The move may also indicate the company's positive outlook on its growth prospects and its ability to attract institutional investors.

Investors and market watchers will be keenly observing the outcome of the shareholder approval process and the subsequent execution of the QIP, as it could have significant implications for the company's financial structure and future growth strategies.

Stakeholders are advised to keep an eye on further announcements from Amic Forging Limited for additional information on this significant financial move.