WS Industries Completes Rs 149.43 Crore Preferential Allotment to FPI Investors

WS Industries (India) Limited has successfully completed its preferential issue, allotting securities worth Rs 149.43 crore to non-promoter Foreign Portfolio Investors (FPIs) on January 2, 2026. The infrastructure sector company's Allotment Committee approved the allocation following shareholder approval at the Extraordinary General Meeting held on December 12, 2025.

Preferential Issue Completion

The company's Allotment Committee, in its meeting held on January 2, 2026, approved the allotment of securities to identified non-promoter entities. The allotment received in-principle approvals from both stock exchanges on December 18, 2025, following the EGM approval.

Security Type	Quantity Allotted	Issue Price (Rs)	Total Value (Rs Crore)
Equity Shares	99,43,125	100.00	99.43
Convertible Warrants	50,00,000	100.00	50.00
Total Allotment	1,49,43,125	100.00	149.43

Investor Allocation Details

The preferential issue was subscribed by two major FPI investors, with partial subscription noted for one investor:

Investor	Category	Securities Allotted	Value (Rs Crore)
M7 Global Fund PCC – Cell Dewcap Fund	Non-Promoter (FPI)	49,43,125 Equity Shares	49.43
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

Partial Subscription Impact

M7 Global Fund PCC – Cell Dewcap Fund subscribed partially to the offered securities. The fund was originally offered 95,00,000 equity shares but subscribed to only 49,43,125 shares, leaving 45,56,875 shares unsubscribed. The unsubscribed portion has lapsed in accordance with regulatory provisions.

Convertible Warrants Terms

The 50,00,000 convertible warrants allotted to Vikasa India EIF I Fund carry specific conversion terms:

Parameter	Details
Conversion Period	18 months from allotment date
Conversion Ratio	1 warrant = 1 equity share
Upfront Payment	25% (Rs 12.50 crore received)
Balance Payment	75% at conversion

Previous Financial Performance

For the quarter ended September 30, 2025, WS Industries reported consolidated results showing a significant year-over-year decline:

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 After Tax	Rs 0.29 crore	Rs 3.86 crore	-92.49%

Strategic Implications

The successful completion of the preferential issue, despite partial subscription, provides WS Industries with Rs 149.43 crore in capital to support its growth initiatives. The company had previously converted 5,35,120 warrants into equity shares in July 2025, demonstrating ongoing capital structure optimization efforts.

The allotment increases the company's equity base and provides financial flexibility as it navigates the challenging business environment reflected in its recent quarterly performance. The participation of established FPI investors signals continued institutional confidence in the company's long-term prospects.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.87%	+1.17%	+17.14%	-5.82%	-18.38%	+2,149.75%

WS Industries (formerly W.S. Industries (India) Limited) has issued further revised disclosures for its preferential issue of equity shares and convertible warrants, following clarification from the National Stock Exchange (NSE). The company has now incorporated the Discounted Cash Flow (DCF) method in its valuation report, as directed by the exchange.

Revised Valuation Report

The registered valuer has issued an addendum valuation report dated August 26, 2025, which includes the DCF method under the Income Approach. This addition comes after the company submitted duly signed financial projections on August 25, 2025.

Key Findings

The fair value per equity share has been determined at ₹71.88 using the DCF method.
The minimum price for the preferential issue remains unchanged at ₹80.32, which is the higher value under SEBI ICDR Regulations.

Valuation Methodology

The revised valuation report employs three approaches to estimate the fair value of the company:

Approach	Method	Fair Value Per Share (₹)	Weight	Weighted Average Price (₹)
Market	Weighted Average Market Price	80.32	80%	64.25
Asset	Net Asset Value (NAV)	50.05	10%	5.00
Income	Discounted Cash Flow (DCF)	26.33	10%	2.63
Fair Value Per Equity Share		100%	71.88

Background

WSI Ltd was taken over by new promoters in June 2022 and is currently undergoing an operational revamp in the infrastructure sector. The company had previously excluded the DCF method due to the unavailability of profitability projections. However, the NSE advised that this was not a valid ground for exclusion.

Implications

Despite the inclusion of the DCF method and the resulting fair value of ₹71.88 per share, the minimum price for the preferential issue remains at ₹80.32. This is in line with SEBI regulations, which require the issue price to be the higher of the values determined under various methods.

Company Statement

V. Balamurugan, Company Secretary of WSI Ltd, confirmed that all other contents of the EGM Notice dated June 27, 2025, and previous disclosures remain unchanged and continue to be in force.

The revised valuation report and disclosures demonstrate WSI Ltd's commitment to regulatory compliance and transparency in its preferential issue process. Investors and market participants will likely view this update as a positive step towards more comprehensive financial reporting and valuation practices.