Tilaknagar Industries Ltd (NSE: TI) saw its shares fall 5% in Wednesday’s trade following a major fundraising announcement. As of 9:54 AM, the shares were trading 3.88% lower at Rs 490.25.
The company’s board has approved a preferential issue of securities, including equity shares and warrants, to raise approximately ₹2,296 crore. The issue price has been set at ₹382 per security, representing a discount of nearly 25% to the current market price, which triggered investor concerns and a negative reaction on the stock.
The preferential allotment is being offered to 44 investors, including promoters and other existing institutional stakeholders. One of the most significant aspects of this issue is the participation of the promoter group, with Mr. Amit Dahanukar, the company’s Chairman and Managing Director, subscribing to warrants worth around ₹306 crore. This move is being seen as a strong show of confidence in the company’s future prospects.
Tilaknagar Industries plans to use the proceeds from this capital raise primarily for acquiring the Imperial Blue business division, a strategic expansion that could bolster its product portfolio and market share in the competitive IMFL space. A part of the funds will also be allocated for general corporate purposes.
The company stated that this preferential issue, coupled with an upcoming debt raise, is part of a balanced financing strategy to fund the acquisition and drive long-term growth.
Tilaknagar Industries shares opened at ₹499.00 and touched a high of ₹517.25 during the day, while the low was ₹481.00. The stock had closed at ₹510.05 in the previous session. Its 52-week range spans from a low of ₹199.53 to a high of ₹524.00.
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