Foseco India Limited , a key player in the foundry industry, has made a significant move in its corporate structure by allotting 11,50,800 equity shares on a preferential basis. This strategic decision, approved by the company's Board of Directors on November 11, 2025, and effective from November 12, 2025, marks a notable development in Foseco India's capital allocation strategy.

Details of the Allotment

The preferential allotment was distributed between two entities:

Regulatory Compliance and Approvals

The allotment follows a series of regulatory steps and approvals:

1. Shareholder approval via special resolution at an extraordinary general meeting held on September 21, 2025.
2. In-principle approvals received from:
   • National Stock Exchange of India (NSE) on November 3, 2025
   • BSE Limited on November 4, 2025

Key Points to Note

• Issue Price: The shares were issued at a face value of Rs 10.00 each.
• Consideration: The allotment was made for consideration other than cash, indicating a strategic transaction rather than a capital-raising exercise.
• Regulatory Compliance: The allotted shares are subject to lock-in and transferability restrictions as prescribed under SEBI regulations, specifically Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Implications

This preferential allotment to Morganite Crucible Limited and Morgan Terrassen BV suggests a potential strengthening of strategic partnerships or a realignment of ownership structure within Foseco India Limited. While the immediate financial impact may be limited due to the non-cash nature of the transaction, it could have implications for the company's governance and strategic direction.

Investors and market watchers may be interested in observing any subsequent changes in the company's operations or strategy that may result from this share allotment. Stakeholders are advised to monitor future announcements and financial reports from Foseco India Limited to assess the full impact of this corporate action.

Foseco India Limited has released its financial results for the second quarter, showcasing a mixed performance with improvements in revenue and EBITDA, but a decline in net profit.

Financial Highlights

Revenue Growth

Foseco India reported a revenue of ₹1,507.16 crore for the quarter, marking a 7.08% increase from ₹1,407.48 crore in the same quarter last year. This growth indicates a positive trend in the company's top-line performance.

Improved Operational Efficiency

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant improvement, rising to ₹275.00 crore from ₹239.00 crore in the previous year's corresponding quarter. This represents a 15.06% year-over-year increase. The EBITDA margin also expanded to 18.27% from 17.01%, suggesting enhanced operational efficiency.

Net Profit Decline

Despite the growth in revenue and EBITDA, Foseco India experienced a decline in net profit. The company reported a net profit of ₹165.00 crore for the quarter, down 13.61% from ₹191.00 crore in the corresponding quarter of the previous year.

Corporate Actions

The company's Board of Directors met on November 6 to approve the unaudited financial results for the quarter and nine months ended September 30. The meeting commenced at 17:10 hours (IST) and concluded at 17:50 hours (IST).

Exceptional Item

Foseco India recognized an exceptional item of ₹47.985 crore during the quarter. This expense is related to regulatory fees, stamp duty, advisory and valuation consultancy costs associated with the proposed acquisition of Morganite Crucible (India) Limited.

Future Prospects

Foseco India, along with its promoters, has entered into a Share Purchase Agreement (SPA) with the promoters of Morganite Crucible (India) Limited (MCIL) to acquire a 75% equity stake in MCIL. The acquisition, valued at ₹653.94 crore, will be effected through a share swap arrangement. This strategic move could potentially impact the company's future financial performance and market position.

Investors and market watchers will be keen to see how Foseco India addresses the challenges that led to the net profit decline while capitalizing on its revenue growth and operational improvements in the coming quarters.