Magellanic Cloud Details Allocation of Funds from Preferential Issue, Outlining Key Projects and Investments
Magellanic Cloud Limited has provided a detailed clarification regarding the utilization of funds generated through its preferential issue involving 3,69,28,573 Equity Shares and 12,67,00,000 Convertible Warrants. This update pertains to the objects of the issuance, which were refined following observations received from Stock Exchanges concerning a proposed strategic initiative.The company confirmed that one specific object of the issue was updated. The prior scope regarding utilizing proceeds for strategic acquisitions, technology acquisitions, investments, joint ventures, purchase of businesses, assets, intellectual property, and related growth opportunities has been specifically narrowed down to "Acquisition for inorganic growth opportunities."
The objects of the issuance, on a consolidated basis, are allocated across various strategic areas over defined timelines. The funds are earmarked for developing key projects, operational needs, debt servicing, and future inorganic acquisitions.
Key Objectives and Financial Allocation:
| Sr. No. | Objects of the Issue | Amount ( Crore) | Timeline |
|---|---|---|---|
| 1 | To invest/ infuse funds in newly incorporated subsidiary MCRAY Xtend India Private Limited for a state-of-the-art drone manufacturing facility, covering Capital expenditure towards Land Building, Plant and Machinery at the Hyderabad facility (Phase-1 Drone Project). | 150.00 | 24 Months |
| 2 | Funding the Company's incremental working capital requirements, primarily to support execution of existing order book in E-Surveillance and Drone businesses, procurement, vendor payments, and employee costs. | 100.00 | 18 Months |
| 3 | Repayment/pre-payment, in full or in part, of existing borrowings and other indebtedness from various lenders. | 50.00 | 18 Months |
| 4 | To carry out research, development, design, integration, testing, and commercialization activities related to Drone and Counter-UAV technologies through technology transfer arrangements and establishing requisite facilities. | 75.00 | 24 Months |
| 5 | General Corporate Purposes. | 100.00 | 18 Months |
| 6 | Acquisition for inorganic growth opportunities. | 15.89 | 24 Months |
| Total | 490.89 |
Magellanic Cloud stated that all other terms and conditions related to the objects of the issue, as previously outlined in its general notice and corrigendum, remain unchanged. The company reaffirmed its commitment to timely disclosures and compliance with applicable laws and regulatory requirements.
MCLOUD Stock Price Movement
Magellanic Cloud Limited's shares closed today after shedding 1.25% of its value, settling at ₹29.08 as the market concluded trading. The stock experienced notable intraday volatility, finding a low of ₹27.8 and peaking at ₹29.7 during the session.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.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.