Manaksia Coated Metals & Industries Limited (MCMIL), a prominent manufacturer and exporter of high-quality coated metal products, has announced the approval of a preferential issue of equity warrants to raise ₹134.55 crore. The Board of Directors of the company approved the issuance of 207,000 warrants, priced at ₹65 each, during a meeting held on December 2, 2024. This move is part of MCMIL’s strategic plan to significantly boost its production capacity and implement a major technology upgrade.
The funds raised from the preferential warrant issue will be used for a technology upgrade project. The company plans to enhance its production capabilities for Alu-Zinc Coated Steel products, with the production capacity set to increase from 132,000 MTPA (metric tons per annum) to 180,000 MTPA, marking a 36% increase in output. This expansion is expected to drive a corresponding growth in revenue. Additionally, MCMIL plans to implement a forward integration project, which includes the installation of a new steel coil coating line, raising its capacity for Pre-painted Steel from 86,000 MTPA to 236,000 MTPA.
A portion of the raised funds will also be allocated to streamline the company’s working capital cycle and establish a captive solar power plant in phases. This move highlights MCMIL’s commitment to sustainable and energy-efficient practices. The company’s focus on increasing production capacity while reducing its carbon footprint aligns with global trends toward sustainable manufacturing.
Mr. Karan Agrawal, Whole Time Director of MCMIL, expressed enthusiasm about the development, stating, “We are excited to announce the approval of the preferential equity warrant issue, which will help us significantly expand our production capacity, especially in Alu-Zinc. This expansion will not only allow us to meet growing market demand more efficiently but also improve profitability and operational flexibility. The phased development of a captive solar power plant will further support our sustainability goals and help reduce long-term energy costs. Combined with the enhanced capacity, this expansion will strengthen our market position and ensure we remain competitive.”
