Ramkrishna Forgings Limited , a key player in the forging industry, has announced plans to raise ₹199.92 crore through a preferential issue of convertible warrants. The company's board has approved the issuance of 34,00,000 fully convertible warrants to promoter Chaitanya Jalan at ₹588 per warrant.

Key Details of the Preferential Issue

• Number of Warrants: 34,00,000
• Issue Price: ₹588 per warrant
• Total Fundraise: ₹199.92 crore
• Allottee: Chaitanya Jalan (Promoter)
• Conversion Ratio: Each warrant is convertible into 1 equity share of face value ₹2

Utilization of Funds

The company plans to use the proceeds for the following purposes:

1. Debt Repayment: Approximately ₹149.94 crore will be used for repayment or pre-payment of outstanding borrowings.
2. General Corporate Purposes: Up to 25% of the issue proceeds (approximately ₹49.98 crore) will be used for general corporate purposes.

Impact on Shareholding

Post-issue, assuming full conversion of warrants:

• Chaitanya Jalan's shareholding will increase from 1.67% to 3.48%
• Total promoter and promoter group shareholding will rise from 43.43% to 44.47%

Key Terms and Conditions

• The warrants will be convertible into equity shares within 18 months from the date of allotment.
• 25% of the warrant price will be payable at the time of subscription, with the balance due at the time of conversion.
• The issue price of ₹588 per warrant is higher than the minimum price calculated as per SEBI ICDR Regulations.

Regulatory Compliance

• The preferential issue is subject to shareholder approval at an Extraordinary General Meeting (EGM) scheduled for December 12, 2025.
• India Ratings & Research Private Limited has been appointed as the Monitoring Agency to oversee the use of proceeds, as required by SEBI regulations for issues exceeding ₹100 crore.

Management Commentary

While specific management quotes were not provided, the company's decision to raise funds through a preferential issue to a promoter indicates confidence in the company's future prospects and a commitment to strengthening its financial position.

This strategic move by Ramkrishna Forgings is expected to improve its debt-equity ratio and provide financial flexibility for future growth initiatives.

Ramkrishna Forgings Limited, a leading manufacturer of forged components, has announced that its Board of Directors has approved a request from Ramkrishna Rail Infrastructure Private Limited (RRIPL) to be reclassified from the 'Promoter Group' category to the 'Public' category of shareholders.

Request Details

RRIPL currently holds 65,00,000 equity shares, representing 3.59% of Ramkrishna Forgings' total equity share capital. The entity has stated that it is not directly or indirectly associated with the company's business operations and does not have any control over the management or policy decisions.

Rationale and Compliance

In its rationale, RRIPL confirmed that:

• It is not engaged in the management or operations of Ramkrishna Forgings in any manner.
• None of the members of the Promoter & Promoter Group of Ramkrishna Forgings controls more than one-half of the total voting power of RRIPL or controls the composition of RRIPL's Board.

The Board noted that RRIPL meets all criteria specified under Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations for reclassification.

Approval Process

The reclassification request is subject to the following approvals:

1. Receipt of no-objection from the Stock Exchanges
2. Approval from the shareholders of Ramkrishna Forgings

Next Steps

Ramkrishna Forgings will undertake the application process to the Stock Exchanges in due course. The company will also seek shareholder approval as required by regulations.

This move is part of Ramkrishna Forgings' ongoing efforts to align its shareholding structure with the current operational realities of the company. The reclassification, if approved, may potentially impact the company's shareholding pattern and could have implications for future corporate actions.

Investors and stakeholders should note that this reclassification is subject to regulatory and shareholder approvals, and the final outcome may affect the company's ownership structure.