Simplex Castings Limited (SCL) has successfully raised ₹7.31 crore through a preferential allotment of equity shares, as disclosed in a recent regulatory filing. The company's board of directors approved the allotment of 2,97,248 fully paid-up equity shares at a price of ₹246.00 per share, including a premium of ₹236.00.

Details of the Allotment

The preferential issue was distributed among four investors, comprising one promoter and three non-promoters:

Impact on Share Capital

Following this allotment, Simplex Castings' paid-up share capital has increased from ₹7.19 crore to ₹7.49 crore. The total number of equity shares now stands at 74,95,529, each with a face value of ₹10.00.

Regulatory Compliance

The preferential issue received shareholder approval through a special resolution passed at an Extraordinary General Meeting. Additionally, the Bombay Stock Exchange (BSE) granted in-principle approval for the issue.

Lock-in Period and Share Status

The newly allotted shares will be subject to a lock-in period as specified under Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations. These shares will rank pari-passu with the existing equity shares of the company in all respects.

Simplex Castings Limited stated that it would apply for listing and trading approval for the newly allotted shares from the stock exchange in due course, in compliance with applicable laws.

This capital raise through preferential allotment is expected to strengthen the company's financial position and support its growth initiatives.

Simplex Castings Limited , a prominent player in the casting industry, has announced strong financial results for the first quarter, alongside strategic corporate decisions.

Financial Highlights

The company's unaudited financial results for Q1 showcase significant growth:

Simplex Castings witnessed a remarkable 64.40% year-on-year increase in revenue from operations, rising to Rs. 4,519.73 lakhs from Rs. 2,749.15 lakhs in the same quarter of the previous year. The company's net profit saw an even more impressive growth, surging by 193.10% to Rs. 473.75 lakhs, compared to Rs. 161.64 lakhs in Q1 FY25.

This robust performance translated into a significant improvement in earnings per share, which climbed to Rs. 6.70 from Rs. 2.38 in the corresponding quarter last year, marking a 181.50% increase.

Corporate Developments

In addition to the financial results, the Board of Directors made several key decisions during their meeting held on August 4:

1. Office Relocation: The Board has approved reinitiating the process to shift the company's registered office from Maharashtra to Chhattisgarh. This move is subject to approval from both company members and regulatory authorities.

2. Annual General Meeting: Simplex Castings has scheduled its 45th Annual General Meeting (AGM) for September 27. The meeting will be conducted through video conferencing, adapting to modern corporate practices.

Management Commentary

Sangeeta K Shah, Managing Director of Simplex Castings Limited, stated, "Our first quarter results reflect the company's strong operational performance and market position. The significant growth in revenue and profitability demonstrates our ability to capitalize on market opportunities and efficiently manage our resources."

Looking Ahead

As Simplex Castings Limited moves forward with its plans to relocate its registered office and prepares for its upcoming AGM, the company appears well-positioned to build on its strong start to the fiscal year. Investors and stakeholders will be keenly watching how these strategic moves, coupled with the company's financial performance, shape its future growth trajectory.

The unaudited financial results have been reviewed by the Audit Committee and approved by the Board of Directors. They are prepared in accordance with the Indian Accounting Standards (Ind AS) and other recognized accounting practices and policies.