W.S. Industries Calls EGM to Revise Fund Utilization and Approve Fresh Preferential Issues

WS Industries (India) Limited has scheduled an Extraordinary General Meeting (EGM) on December 12, 2025, to seek shareholder approval for significant financial decisions, including the revision of previously raised funds and new preferential issues.

Revision of Fund Utilization

The company plans to modify the utilization of ₹245.00 crore raised through a preferential issue approved at the previous EGM on July 25, 2025. This amount includes ₹20.00 crore from equity shares and ₹225.00 crore from convertible warrants. The revised plan aims to optimize deployment for business expansion, project execution, and repayment obligations.

Key changes in fund allocation include:

Purpose	Amount (₹ Crore)	Percentage	Timeline
Land Acquisition and Development	160.00	65.31%	March 31, 2028
Repayment of Outstanding Security Deposits	53.70	21.92%	March 31, 2028
Working Capital Requirements	16.00	6.53%	March 31, 2028
General Corporate Purposes	15.30	6.24%	March 31, 2028

New Preferential Issues

WS Industries also seeks approval for two new preferential issues:

Issue of 1,45,00,000 equity shares at ₹100 per share, aggregating to ₹145.00 crore.
Issue of 50,00,000 convertible warrants at ₹100 per warrant, totaling ₹50.00 crore.

These issues are primarily targeted at non-promoter entities, including Foreign Portfolio Investors (FPIs) such as M7 Global Fund PCC - Cell Dewcap Fund and Vikasa India EIF I Fund.

Proposed Allottees and Their Stakes

Post-issue, the proposed allottees' stakes are expected to be:

Allottee	Post-Preferential Stake
M7 Global Fund PCC - Cell Dewcap Fund	8.65%
Vikasa India EIF I Fund	9.11%

Use of New Funds

The proceeds from these new issues are intended for:

Acquisition and development of land
Redemption of preference shares and partial redemption of non-convertible debentures
Working capital requirements
General corporate purposes

Impact on Shareholding

The preferential issues will lead to a dilution of existing shareholdings. The promoter group's stake is expected to decrease from 59.27% to 46.54%, while public shareholding will increase from 40.73% to 53.46%.

Regulatory Compliance

The company has appointed a monitoring agency, M/s. India Ratings and Research Pvt. Ltd, to oversee the utilization of funds, as required by SEBI regulations for issues exceeding ₹100.00 crore.

Shareholders will vote on these proposals at the upcoming EGM. The company states that these measures are aimed at supporting its growth initiatives and improving its financial position.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.01%	-2.64%	+2.14%	+3.04%	-28.25%	+2,261.76%

WS Industries (India) Limited, a leading player in the infrastructure sector, has announced significant corporate actions and its financial results for the second quarter of fiscal year 2026. The company's board of directors approved a substantial preferential issue and reported its quarterly performance in a meeting held on November 14, 2025.

Preferential Issue Approval

The board has given the green light to a preferential issue aimed at raising Rs 195.00 crore, subject to shareholder approval at the upcoming Extraordinary General Meeting (EGM) scheduled for December 12, 2025. The issue comprises:

1.45 crore equity shares at Rs 100.00 each
50 lakh convertible warrants at Rs 100.00 each

This strategic move is designed to bolster the company's financial position and support its growth initiatives.

Key Investors

The preferential issue will be allotted to non-promoter entities, including Foreign Portfolio Investors (FPIs). The major participants include:

Investor	Category	Securities	Value (Rs in Crores)
M7 GLOBAL FUND PCC – CELL DEWCAP FUND	Non-Promoter (FPI)	95,00,000 Equity Shares	95.00
VIKASA INDIA EIF I FUND	Non-Promoter (FPI)	50,00,000 Equity Shares	50.00
VIKASA INDIA EIF I FUND	Non-Promoter (FPI)	50,00,000 Convertible Warrants	50.00

Financial Performance Highlights

For the quarter ended September 30, 2025, WS Industries reported the following consolidated results:

Particulars	Q2 FY2026	Q2 FY2025	YoY Change
Revenue from Operations	Rs 24.05 crore	Rs 62.07 crore	-61.25%
Total Income	Rs 24.69 crore	Rs 62.90 crore	-60.75%
Profit Before Tax	Rs 0.36 crore	Rs 4.63 crore	-92.22%
Profit After Tax	Rs 0.29 crore	Rs 3.86 crore	-92.49%

The company experienced a significant year-over-year decline in both revenue and profitability for the quarter.

Half-Year Performance

For the half-year ended September 30, 2025, the consolidated results showed:

Total Income: Rs 51.50 crore
Profit Before Tax: Rs 2.14 crore
Profit After Tax: Rs 1.65 crore

Other Key Developments

The company appointed India Ratings and Research Pvt. Ltd. as the monitoring agency for the proposed preferential issue.
WS Industries converted 535,120 warrants into fully paid-up equity shares on July 17, 2025.
The board approved a variation in the utilization of funds raised through a previous preferential issue, subject to shareholder approval.

Conclusion

WS Industries continues to navigate a complex business environment, as evidenced by the decline in quarterly performance. The upcoming EGM and the completion of the preferential issue will be crucial events for investors to watch in the coming months.

Investors and stakeholders should note that the financial results are subject to limited review by the company's statutory auditors, and the preferential issue is pending regulatory and shareholder approvals.