Kingfa Science & Technology (India) Limited, a leading player in the Indian plastics industry, has announced a significant move to raise capital through a preferential share issue. The company's board of directors has approved the issuance of up to 14,40,920 equity shares to seven non-promoter investors, aiming to raise approximately INR 499.99 crore.

Key Details of the Preferential Issue

• Issue Price: INR 3,470.00 per share
• Face Value: INR 10.00 per share
• Premium: INR 3,460.00 per share
• Total Shares: Up to 14,40,920 equity shares
• Total Amount: Up to INR 499,99,92,400.00

Investors and Allocation

The preferential allotment will be made to seven non-promoter investors, including:

Impact on Shareholding

Post-allotment, the new investors will collectively hold approximately 10.63% of the company's equity. The individual shareholding percentages will be as follows:

• SBI Flexicap Fund: 2.55%
• SBI Conservative Hybrid Fund: 2.64%
• Custody Bank of Japan Ltd RE RB Amundi India Small Cap Equity Mother Fund: 2.02%
• SBI Automotive Opportunities Fund: 1.36%
• SBI Emergent India Fund: 0.79%
• SBI Optimal Equity Fund - Long Term: 0.74%
• Sanshi Fund -I: 0.53%

Approval Process and Timeline

The proposal for the preferential issue is subject to shareholder approval, which will be sought at an extraordinary general meeting (EGM) scheduled for September 17, 2025. The company has also fixed the date for its 41st Annual General Meeting (AGM) on September 29, 2025, which will be held through video conferencing or other audio-visual means in compliance with applicable regulations.

Other Board Decisions

In addition to the preferential issue, the board has reappointed Mr. K. Suryanarayanan as the Cost Auditor for the financial year ending March 31, 2026. Mr. Suryanarayanan is a qualified Cost Accountant with extensive experience in cost and management accounting, statutory audits, and compliance.

This capital raising initiative by Kingfa Science & Technology (India) Limited is expected to strengthen the company's financial position and support its growth plans. The participation of prominent institutional investors signals confidence in the company's prospects and may potentially enhance its market standing.

Kingfa Science & Technology (India) Limited , a company specializing in science and technology solutions, has announced a significant development in its financial strategy. The company's Board of Directors is set to convene on August 22, 2025, to deliberate on a proposal for raising funds through a preferential issue of securities.

Key Points of the Announcement

• Board Meeting Date: August 22, 2025
• Primary Agenda: Consideration of fund-raising through preferential issue of securities
• Potential Recipients: One or more persons
• Regulatory Compliance: The issue will be in accordance with SEBI regulations and the Companies Act, 2013
• Shareholder Approval: Required for the proposed fund-raising

Trading Window Closure

In line with regulatory requirements and the company's internal Code of Conduct for Prevention of Insider Trading, Kingfa Science & Technology has implemented the following measures:

• The trading window for the company's securities has been closed with immediate effect
• This closure applies to directors, promoters, designated persons, connected persons, and their immediate relatives
• The trading window will reopen 48 hours after the announcement of the meeting's outcome

Additional Considerations

The Board meeting agenda also includes:

• Consideration of convening an Extra-Ordinary General Meeting
• Alternatively, initiating a Postal Ballot process to seek shareholder approval for the fund-raising proposal

Implications and Next Steps

This move by Kingfa Science & Technology suggests a strategic approach to capital raising. The preferential issue, if approved, could provide the company with additional funds for various purposes such as expansion, debt reduction, or investment in new technologies. However, the specific use of funds and the impact on the company's financial position will only be clear after the Board meeting and subsequent disclosures.

Investors and stakeholders should keep an eye out for further announcements following the Board meeting on August 22, 2025. The outcome of this meeting, including any decisions on the preferential issue and the process for seeking shareholder approval, will be crucial for understanding the company's future financial direction.

Market participants are advised to make informed decisions based on official company disclosures and regulatory filings.