Foseco India Limited , a key player in the foundry industry, has completed a significant preferential share allotment to two Morgan Group entities. The company allotted 11,50,800 equity shares on November 12, 2025, following Board approval on November 11, 2025, marking a strategic development in its capital structure.

Share Allotment Details

The preferential allotment was distributed between two Morgan Group entities:

The allotment significantly altered Foseco India's equity structure:

Regulatory Compliance Framework

The transaction followed comprehensive regulatory procedures. Shareholder approval was secured through special resolution at an extraordinary general meeting on September 21, 2025. In-principle approvals were obtained from the National Stock Exchange of India on November 3, 2025, and BSE Limited on November 4, 2025.

Morganite Crucible Limited filed substantial acquisition disclosure under Regulation 29(1) of SEBI Takeover Regulations on December 18, 2025. The disclosure was submitted to both NSE and BSE, with Esther Bruin signing on behalf of Morgan Terrassen BV, while identifying Morganite Crucible Limited as a Person Acting in Concert.

Transaction Structure and Features

The shares are subject to lock-in and transferability restrictions under Chapter V of SEBI Issue of Capital and Disclosure Requirements Regulations, 2018. The non-cash consideration indicates a strategic transaction rather than a capital-raising exercise.

Strategic Implications

This preferential allotment strengthens the relationship between Foseco India Limited and the Morgan Group entities. The coordinated acquisition by Morgan Terrassen BV and Morganite Crucible Limited, acting in concert, represents a substantial 18.02% increase in the company's equity base. While the immediate financial impact remains limited due to the non-cash nature, the transaction could influence the company's governance structure and strategic direction.

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.