Pavna Industries Limited announced its plans to raise up to ₹322.03 crore through a preferential issue of equity shares and warrants, as approved by its board of directors on September 26, 2024. The company will issue up to 23,77,000 equity shares at ₹505 per share to non-promoter public investors, raising ₹120.03 crore. Additionally, it will issue up to 40,00,000 fully convertible warrants at the same price to promoter/promoter group entities, potentially raising another ₹202 crore.
The shares of Pavna Industries Limited were trading at ₹522.05 up by ₹16.15 or 3.19 per cent on the NSE today at 11.20 am.
The board also granted in-principle approval to raise up to ₹500 crore through various instruments, including Foreign Currency Convertible Bonds, to further propel growth and finance business opportunities. A Fund Raising Committee has been constituted to oversee these initiatives.
Pavna Industries plans to alter its Memorandum of Association to align with current and proposed business dynamics, subject to shareholder approval. The company will seek members’ approval for these decisions at an Extraordinary General Meeting scheduled for October 23, 2024.
These fundraising efforts aim to accelerate business growth and augment the company’s long-term financial resources. The preferential issue, if fully subscribed, will increase the public shareholding from 29.56 per cent to 32.21 per cent, while the promoter group’s stake will decrease from 70.44 per cent to 67.79 per cent on a fully diluted basis.
