Moneycontrol PRO
Exclusive Offer for New Credit Score Users Check your Credit Score and Get Rs 100 Cashback!

Ramkrishna Forgings extends gains, up 2%

The company announced an additional investment by way of a rights issue in wholly-owned subsidiary RKFL Engineering Industry Private Limited

November 17, 2023 / 03:53 PM IST
,..,..,.,.,....,,,,.....,,...

Naresh Jalan, MD of Ramkrishna Forgings, said that this fundraiser will enable us to embark on the next phase of our company's growth journey.

Ramkrishna Forgings Limited traded over 2 percent higher on November 17 afternoon, rallying for three trading sessions in a row, after it announced an additional investment by way of a rights issue in wholly-owned subsidiary RKFL Engineering Industry Private Limited (REIPL).

The money shall be used to "finance the acquisition of JMT Auto Limited and another general corporate purpose as applicable", the company said in an exchange filing on November 16. The amount said to be invested is Rs 10 crore.

Follow our market blog for all the live action

The subsidiary was set up on March 6, 2023 and is involved in forgings and fabrications. The cash infusion comes a day after the company provided a corporate guarantee of up to an amount of Rs 50 crore to secure the credit facilities.

On November 15, India’s second-largest forgings company announced that it had successfully raised Rs 1,000 crore through a qualified institutions placement (QIP) of its equity shares.

The company said its first QIP garnered significant interest from prominent domestic and international institutional investors. Nomura, SmallCap World Fund from Capital Group, and BNP Paribas, among others, participated in the offering and were allocated up to 71.22 percent of the offered equity shares.

Ramkrishna Forgings MD Naresh Jalan said this fundraiser would enable the company to embark on the next phase of its growth journey, particularly in substantially reducing the debt and advancing manufacturing initiatives.

At 3.22 pm, the stock was trading at Rs 727.10 on NSE, up 1.59 percent from the previous close.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions.

Moneycontrol News
first published: Nov 17, 2023 03:24 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!