Ganga Forging Limited Launches Rights Issue Offering Up To 20 Crore Shares
Ganga Forging Limited has announced a significant rights issue offering, inviting existing equity shareholders to participate in an issuance of up to 20,22,03,345 fully paid-up Equity Shares. The offer materials were released on June 27, 2026.The Rights Issue allows eligible Equity Shareholders the opportunity to subscribe for new shares at a premium, with the issue price set at Rs. 1.63/- per share against a face value of Re. 1/-. This translates into an aggregated gross proceeds target of up to Rs. 3,295.91 Lakhs (Rupees Thirty-Two Crore Ninety-Five Lakh Ninety-One Thousand Four Hundred and Fifty-Two Only).
The offering operates at a ratio of three Rights Equity Shares for every two fully paid-up Equity Shares held by the eligible shareholders.
Financial Structure and Objectives
The issuance aims to enhance the company’s capital structure through the funds generated from the offering. The Issue Proceeds are projected to be up to Rs. 3,295.91 Lakhs, with estimated issue-related expenses totaling Rs. 35.00 Lakhs, resulting in net proceeds of Rs. 3,260.91 Lakhs.The funds raised will be utilized across several key objectives, including:
- Repayment of a loan availed for the Solar Power Project.
- Capital Expenditure towards the Solar Power Project.
- Repayment of a loan related to Railway Clip Manufacturing Activities.
- Capital Expenditure directed toward the Forging Business.
- Repayment of a Cash Credit Facility facility utilized by the forging business.
- Meeting working capital requirements for the production of Elastic Rail Clips (ECR).
- General Corporate Purposes.
Issue Timeline and Milestones
Key dates provided in relation to the rights issue are as follows:| Milestone | Date |
|---|---|
| Record Date (to determine eligibility) | July 02, 2026 |
| Issue Opening Date | Friday, July 10, 2026 |
| Last Date for On Market Renunciation | Wednesday, July 15, 2026 |
| Issue Closing Date | Monday, July 20, 2026 |
| Date of Allotment | Tuesday, July 21, 2026 |
| Date of Credit of Rights Equity Shares | Tuesday, July 22, 2026 |
The total shares outstanding before the Issue stood at 13,48,02,230 Equity Shares. Assuming full subscription for the rights entitlement, the total issued and paid-up share capital could rise to up to 33,70,05,575 Equity Shares.
Company Financial Snapshot
The financial performance of Ganga Forging Limited for the last three fiscal years (FY2024, FY2025, and FY2026) is summarized below:| Metric | FY 2026 | FY 2025 | FY 2024 |
|---|---|---|---|
| Total Income | Rs. 3,578.78 Lakhs | Rs. 4,344.87 Lakhs | Rs. 3,730.54 Lakhs |
| Net Profit/Loss Before Tax | (Rs. 368.37) Lakhs | Rs. 86.55 Lakhs | Rs. 75.42 Lakhs |
| Net Profit/Loss After Tax | (Rs. 365.38) Lakhs | Rs. 61.31 Lakhs | Rs. 44.34 Lakhs |
| Equity Share Capital | 1,348.02 Lakhs | 1,348.02 Lakhs | 1,341.77 Lakhs |
| Net Worth | 2,850.36 Lakhs | 3,218.93 Lakhs | 3,141.29 Lakhs |
The Company is engaged in the manufacturing of forgings and casting components for the engineering and automotive goods sector. The Issue materials provide detailed terms regarding payment methods, application procedures, and restrictions on purchases and resales.
GANGAFORGE Stock Price Movement
Ganga Forging Limited shares slipped by 3.24% on Thursday, closing at ₹2.40 as trading came to an end after dropping from the previous close of ₹2.47. The stock saw a session low of ₹2.36 and accounted for a volume of 145,561 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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