Rajratan Global Wire Limited has received a substantial acquisition disclosure from its promoter group entity, Rajratan Investments Private Limited, under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The transaction involved an open market purchase that marginally increased the promoter's stake in the company.

Transaction Details

Rajratan Investments Private Limited acquired 33,325 shares of Rajratan Global Wire Limited through open market transactions conducted on February 5, 2026 and February 6, 2026. The acquisition represents 0.07% of the company's total share capital.

Shareholding Pattern Changes

The acquisition resulted in a modest increase in Rajratan Investments' shareholding in the target company. The promoter group entity's stake increased from 18.44% to 18.50% following the transaction.

Company Structure

Rajratan Global Wire Limited maintains its equity share capital structure unchanged following this transaction. The company's total equity share capital remains at 5,07,71,000 equity shares of Rs. 2 each. The shares of the company are listed on both the Bombay Stock Exchange and National Stock Exchange.

Regulatory Compliance

The disclosure was filed by Sunil Chordia, Director of Rajratan Investments Private Limited (DIN: 00144786), in compliance with SEBI regulations governing substantial acquisitions. The promoter group entity confirmed that it does not hold any shares under encumbrance, voting rights other than through shares, or any convertible securities in the target company.

This transaction reflects the promoter group's continued confidence in Rajratan Global Wire Limited, though the acquisition represents a relatively small increase in their existing substantial shareholding position.

Rajratan Global Wire is shifting its strategic focus toward volume-led growth in FY26 as competitive market conditions continue to pressure margins both domestically and internationally. Managing Director and CEO Sunil Chordia outlined the company's approach to navigate the challenging market environment while maintaining operational efficiency.

Strategic Shift Toward Volume Growth

The company has moved away from margin-focused strategies to prioritize market share protection and volume expansion. Chordia emphasized that strong volume growth over the last two quarters has validated this approach, with the company accepting lower-priced orders to improve capacity utilization across its facilities.

Capacity Expansion and Operational Metrics

The Chennai facility represents a key growth driver for the company's expansion plans. The first phase currently operates at 70% utilization with significant expansion underway to double the plant's capacity.

International Operations Performance

Thailand operations have emerged as a significant growth contributor, demonstrating strong momentum in international markets. The facility serves as a strategic hub for expanding presence in key global markets.

Market Dynamics and Cost Management

Raw material cost pressures have increased by approximately 3% at the start of the current quarter, with potential for further increases. The company is managing these challenges through a combination of customer price adjustments and operational efficiencies. Higher volumes and reduced conversion costs are helping offset the impact of rising input costs.

The tyre sector, which represents a significant portion of demand, maintains steady growth patterns with 70% of tyres going to replacement markets and 30% to original equipment manufacturers. The industry expects around 12% growth this year, supported by lower GST rates.

Competitive Landscape Challenges

Competition has intensified across both domestic and international markets. In India, new capacity additions including additional plants in Chennai have increased competitive pressure. Global operations face competition from Chinese players, particularly affecting the Thailand market dynamics.

Rajratan Global Wire currently maintains a market capitalization of ₹2,417.97 crore, though shares have declined more than 3% over the past year, reflecting broader market challenges and competitive pressures in the wire manufacturing sector.