Kalyani Cast-Tech Ltd Approves Preferential Issue of Convertible Warrants Worth Nearly ₹19 Crore

Kalyani Cast-Tech Ltd Approves Preferential Issue of Convertible Warrants Worth Nearly ₹19 Crore​

Kalyani Cast-Tech Limited announced a major capital raising initiative, approving the issue of 3,23,123 Convertible Equity Warrants on a preferential basis. The offer is valued at up to ₹18,80,57,586 and is intended to support the company's expansion plans and working capital requirements.

The proposal was presented in a Special Resolution scheduled for approval by members at an Extra Ordinary General Meeting (EGM) set for July 28, 2026. The Warrants are priced at ₹582 per unit (inclusive of subscription and exercise price).

Allotment Structure and Participants​

The preferential offer targets both promoter groups and non-promoter investors. A total of 3,23,123 Equity Warrants were approved for allotment across seven allottees.

The distribution among the proposed allottees is detailed as follows:

Utilization of Issue Proceeds​

The company requires the funds to meet various strategic and operational needs. The total aggregate amount raised from this preferential issue will be utilized across three key areas: Capital Expenditure (CapEx), Working Capital Requirement, and General Corporate Purposes.

The estimated utilization plan for the Issue Proceeds is as follows:


A portion of these funds will be specifically used for the development and modernization of the company's rail terminal infrastructure, including enhancements to plant, machinery, material handling equipment, and storage facilities. The remaining proceeds are designated to meet working capital needs for railway operations.

Pricing and Investment Terms​

The issue price of ₹582 per warrant was determined in compliance with applicable regulations, set above the minimum floor price calculated at ₹581.64. The company voluntarily obtained a valuation report from an independent registered valuer, Mr. Mohit Jain (IBBI Registration No. IBBI/RV/05/2019/12280).

The Warrants are set to mature within 18 months from the date of allotment and can be exercised into Equity Shares, which will rank pari passu with existing shares of the company. The subscription structure requires a warrant subscription price (equivalent to 25% of the issue price) upon initial purchase, with the remaining 75% payable upon exercising the Warrants.

Shareholding Changes​

The preferential allotment results in changes to the company's shareholding pattern. Before the issue, Promoters and Promoter Group held a total of 4,270,750 shares, representing 59.47% of the stock, while the Public held 2,909,750 shares, or 40.53%.

Post-preferential issuance, the company's Grand Total share capital will stand at 7,503,623 shares. The Promoter Group's holding is projected to increase to 61.19% of the post-issue fully diluted share capital.

KALYANI Stock Price Movement​

Kalyani Commercials Limited shares settled on Friday at ₹138.09, showing zero change from the previous closing price. The equity successfully hit its 52-week high during the trading period, matching the current year's peak valuation of ₹138.09.