Valiant Communications Limited has announced plans to raise Rs 12.91 crore through a preferential share issue, as the company looks to bolster its working capital and fund business expansion. The decision comes amid recent success in securing significant purchase orders, highlighting the company's growth trajectory in the power utility sector.

Preferential Share Issue Details

The company has scheduled an Extraordinary General Meeting (EGM) on February 29, 2024, to seek shareholder approval for the issuance of 4,04,600 equity shares to non-promoter individuals on a preferential basis. The shares will be issued at a price of Rs 319 per share, which includes a premium of Rs 309 over the face value.

Key points of the preferential issue include:

The company has stated that the funds raised will be utilized for working capital requirements, business expenses, and general corporate purposes. Importantly, this preferential issue will not result in any change of control in the company.

Recent Business Developments

The preferential share issue announcement comes on the heels of significant business developments for Valiant Communications. According to a recent press release, the company has secured purchase orders worth Rs 84.70 crore from private sector System Integrators for the supply of its Communication, Protection, and Synchronization equipment. The end-users for these projects are Indian State Electricity Boards (SEBs).

Inder Mohan Sood, CEO of Valiant Communications, commented on the company's progress, stating, "The time-proven successful installations of our equipment are now being recognized by global power utilities, including those in developed Western countries." He highlighted the company's success in Switzerland, where their products have been operating satisfactorily in a nuclear power plant since 2017.

Market Position and Future Outlook

Valiant Communications has positioned itself as a key player in the power utility sector, with a track record of successful installations in over 5,500 power sub-stations worldwide. The company's product range includes communications, transmission, protection, synchronization, NAS data storage equipment, and cybersecurity products.

The recent orders and the planned capital raise through the preferential issue indicate that Valiant Communications is gearing up for accelerated growth. The company's management expressed optimism about near-term opportunities, suggesting a positive outlook for the future.

As an indigenous manufacturer, Valiant Communications is well-positioned to benefit from India's 'Make in India' and 'Atmanirbhar Bharat' initiatives, particularly in the public sector. This strategic advantage, combined with its growing international recognition, sets the stage for potential expansion and increased market share in the coming years.

Investors and stakeholders will be keenly watching the outcome of the upcoming EGM and the subsequent developments in Valiant Communications' business operations and financial performance.

Valiant Communications Limited, a leading manufacturer of communication and power utility equipment, has announced a significant business development. The company has received purchase orders worth INR 847.00 lacs from private sector system integrators for the supply of its communication equipment.

Order Details

The purchase orders, which are inclusive of taxes, cover the supply of Communication, Protection, and Synchronization equipment. These orders are to be executed over a 9-month period, highlighting a substantial short-term boost to the company's order book.

End-Users and Market Reach

Notably, the end-users for this awarded project are Indian State Electricity Boards (SEBs). This underscores Valiant Communications' strong position in the domestic power sector and its ability to cater to the needs of critical infrastructure projects.

Management's Perspective

Mr. Inder Mohan Sood, CEO of Valiant Communications, expressed pride in the company's achievements. He stated, "The time-proven successful installations of our equipment are now being recognized by global power utilities, including those in developed western countries." Mr. Sood highlighted the company's success in Switzerland, where their products have been operating satisfactorily in a nuclear power plant since 2017.

Strategic Positioning

Valiant Communications is positioning itself as a key player in India's 'Make in India' and 'Atmanirbhar Bharat' initiatives. As an indigenous manufacturer, the company sees itself as a natural partner for system integrators pursuing business opportunities in the Indian public sector.

Future Outlook

The management expressed optimism about future growth, mentioning that several other opportunities are nearing finalization. Mr. Sood believes this order contributes to a "continuum momentum of accelerated growth" for the company.

Company Profile

Valiant Communications specializes in manufacturing and exporting a wide range of communications, transmission, protection, synchronization, NAS data storage equipment, and cybersecurity products. The company has a strong track record, with successful installations in over 5,500 power sub-stations worldwide, covering various voltage levels from 33kV to 765kV.

This latest order reinforces Valiant Communications' position in the market and suggests potential for continued growth in the power utility sector.