Hilton Metal Forging Limited (HMFL) has announced a significant move to bolster its financial position through a rights issue of equity shares. The company's board of directors has given the green light to this strategic decision, aiming to raise funds not exceeding Rs 32 crore.

Key Details of the Rights Issue

• Face Value: Rs 10 per equity share
• Maximum Fund Raise: Up to Rs 32 crore
• Eligibility: Open to existing shareholders as of the record date (to be determined)

The board has yet to finalize crucial aspects of the rights issue, including:

• Issue price
• Rights entitlement ratio
• Record date
• Timing and terms of payment

These details will be determined in due course, subject to necessary regulatory approvals.

Financial Context

To provide context for this fundraising initiative, let's look at HMFL's recent financial position:

The company has shown significant growth in its asset base and equity over the past year. The proposed rights issue of up to Rs 32 crore represents a substantial addition to the company's equity, which stood at Rs 115.60 crore as of March 2025.

Implications and Next Steps

1. Strengthening Capital Base: The rights issue will potentially increase HMFL's equity by up to 27.68%, based on the March 2025 figures.
2. Regulatory Compliance: The company will need to obtain necessary approvals and comply with SEBI regulations for the rights issue.
3. Shareholder Decision: Eligible shareholders will have the opportunity to participate in this capital raise, maintaining their proportional ownership in the company.

The management of Hilton Metal Forging Limited will provide further details on the utilization of funds and the specific terms of the rights issue in upcoming announcements. Shareholders and potential investors should keep an eye out for these updates to make informed decisions.

As the company moves forward with this capital raising initiative, it will be crucial to monitor how these additional funds impact HMFL's growth strategy and financial health in the coming quarters.

Hilton Metal Forging Limited , a company listed on both the BSE and NSE, has seen a significant change in its promoter shareholding. Yuvraj Hiralal Malhotra, a promoter of the company, has increased his stake through an off-market transaction.

Key Details of the Transaction

Impact on Shareholding Structure

The off-market transaction has resulted in a notable increase in Yuvraj Hiralal Malhotra's stake in Hilton Metal Forging Limited. Prior to this acquisition, Malhotra held 12,80,742 shares, representing 5.47% of the company's total share capital. Following the purchase of an additional 2,42,790 shares, his holding has increased to 15,23,532 shares, which now accounts for 6.51% of the company's equity.

Regulatory Compliance

This transaction was disclosed in compliance with Regulation 29(2) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The disclosure was made to both the BSE Limited and the National Stock Exchange of India Limited, where the company's shares are listed.

Company Share Capital

The total equity share capital of Hilton Metal Forging Limited remains unchanged at 2,34,00,000 equity shares with a face value of Rs. 10 each. This transaction does not affect the company's overall share capital structure.

The off-market nature of this transaction suggests a strategic move by the promoter to increase his stake in the company. Such actions by promoters are often viewed as a sign of confidence in the company's prospects, although investors should always conduct their own research and consider multiple factors when making investment decisions.