Ramkrishna Forgings extends gains, up 2%

Ramkrishna Forgings Limited traded over 2 percent higher on November 17 afternoon, rallying for three trading sessions in a row, after it announced an additional investment by way of a rights issue in wholly-owned subsidiary RKFL Engineering Industry Private Limited (REIPL).

The money shall be used to “finance the acquisition of JMT Auto Limited and another general corporate purpose as applicable”, the company said in an exchange filing on November 16. The amount said to be invested is Rs 10 crore.

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The subsidiary was set up on March 6, 2023 and is involved in forgings and fabrications. The cash infusion comes a day after the company provided a corporate guarantee of up to an amount of Rs 50 crore to secure the credit facilities.

On November 15, India’s second-largest forgings company announced that it had successfully raised Rs 1,000 crore through a qualified institutions placement (QIP) of its equity shares.

The company said its first QIP garnered significant interest from prominent domestic and international institutional investors. Nomura, SmallCap World Fund from Capital Group, and BNP Paribas, among others, participated in the offering and were allocated up to 71.22 percent of the offered equity shares.

Ramkrishna Forgings MD Naresh Jalan said this fundraiser would enable the company to embark on the next phase of its growth journey, particularly in substantially reducing the debt and advancing manufacturing initiatives.

At 3.22 pm, the stock was trading at Rs 727.10 on NSE, up 1.59 percent from the previous close.

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