Knowledge Marine & Engineering Works Limited (KMEW), a prominent player in the ship building and marine services sector, has announced a significant corporate action involving a preferential issue of equity shares to renowned investor Ashish Kacholia.

Key Details of the Preferential Issue

Broader Context of the Preferential Allotment

The preferential issue to Ashish Kacholia is part of a larger allotment by KMEW. According to the company's LODR (Listing Obligations and Disclosure Requirements) filing, several other entities are also receiving shares through this preferential issue:

• Infinity Direct Holdings: 464,210 shares
• Infinity Direct Capital: 546,316 shares
• Infinity Partners II - Direct: 252,632 shares
• Vimana Capital Management LLP: 52,632 shares
• Suryashakti Management Services Private Limited: 52,632 shares

Implications and Outlook

This preferential allotment suggests a strategic move by Knowledge Marine & Engineering Works to bring in experienced investors and potentially strengthen its capital base. Ashish Kacholia, known for his astute investment choices, maintaining his position as a non-promoter even after this additional allocation indicates a continued interest in the company without seeking management control.

The company's decision to issue shares to multiple non-promoter entities, including Kacholia, may be aimed at broadening its investor base and possibly funding future growth initiatives. However, the specific use of the funds raised through this preferential issue has not been disclosed in the available information.

Corporate Governance and Transparency

It's worth noting that KMEW has promptly disclosed this information to the stock exchanges, in line with regulatory requirements. The company held an Extra-Ordinary General Meeting (EGM) where the resolution for this preferential issue was likely approved by the shareholders.

As the marine engineering sector continues to evolve, such capital actions by companies like KMEW will be closely watched by market participants for insights into the industry's growth trajectory and investor confidence.

Knowledge Marine & Engineering Works Limited (KMEW) has issued a corrigendum to its Extraordinary General Meeting (EGM) notice, providing additional details on its proposed preferential issue of equity shares and convertible warrants. The move comes in response to requests for clarification from the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

Fund Utilization Plan

The corrigendum outlines a comprehensive fund utilization plan totaling Rs. 284.81 crore, to be implemented over a three-year period:

Pricing and Valuation

The issue price for the preferential allotment has been set at Rs. 1,900.00 per equity share and convertible warrant. This price is above the floor price of Rs. 1,861.13, as determined by an independent registered valuer, CA Bhavesh Mansukhbhai Rathod.

Allotment Details

The preferential issue includes allotments to several investors:

• Infinity Direct Holdings: 4,64,210 shares (3.77% post-issue)
• Infinity Direct Capital: 5,46,316 shares (4.44% post-issue)
• Infinity Partners II-Direct: 2,52,632 shares (2.05% post-issue)
• Ashish Kacholia: 3,52,632 shares (2.87% post-issue)
• Vimana Capital Management LLP: 1,61,764 shares (1.32% post-issue)
• Suryashakti Management Services Private Limited: 52,632 shares (0.43% post-issue)
• Sujay Kewalramani: 85,871 shares (0.70% post-issue, assuming full conversion of warrants)

Impact on Shareholding

Post-issue, the promoter shareholding is expected to decrease from 60.69% to 53.93%, while public shareholding will increase from 39.31% to 46.07%.

Compliance and Transparency

KMEW has emphasized its commitment to compliance with all applicable laws and regulations, including SEBI ICDR Regulations. The company has made the corrigendum available on its website and those of the stock exchanges for transparency.

The EGM is scheduled for October 09, 2025, where shareholders will vote on the proposed preferential issue. This capital raise is expected to significantly bolster KMEW's financial position, enabling the company to pursue its growth strategies in the marine engineering sector.