Wednesday, Nov 26 — Shares of Concord Control Systems Limited traded over 5% higher at Rs 2,329, after the company announced a major capital-raising plan through two preferential equity share issues totalling Rs 55.26 crore. The proposal, approved by the board, is now subject to shareholder approval.
According to the company’s disclosure, both issues have been priced at Rs 2,100 per share, and together represent a sizeable development in the company’s capital structure.
Breakdown of the two preferential issues
1. Cash-based preferential issue
-
Value: Rs 50.09 crore
-
Investors: Three, including well-known investor Ashish Kacholia
-
Purpose: Cash infusion into the company
2. Acquisition-based preferential issue
-
Value: Rs 5.17 crore
-
Purpose: Issued as consideration for acquiring stake in Progota India Private Limited
Shareholder approval on December 20, 2025
Concord Control Systems has scheduled an extraordinary general meeting (EGM) on December 20, 2025, during which shareholders will vote on the proposed issues. Approval at the EGM will be essential for the transactions to move forward.
What this means for the company
The board’s decision carries several important implications:
-
Capital Infusion:
The Rs 50.09 crore cash issue will significantly strengthen the company’s capital base. -
Strategic Expansion:
The Rs 5.17 crore issue tied to the Progota India acquisition signals a potential expansion strategy or an entry into new business segments. -
Investor Confidence:
The participation of marquee investor Ashish Kacholia is likely to be viewed positively by the market. -
Possible Dilution:
Existing shareholders may experience dilution once the new shares are issued, depending on the company’s current equity structure.
Concord Control Systems’ stock has traded between Rs 2,300 and Rs 2,345 so far today, with the market cap standing at Rs 23.48 billion.
