Kingfa Science & Technology (India) Limited has informed the Exchange regarding Notice of Extraordinary General Meeting to be held on September 17, 2025
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Kingfa Science & Technology (India) Limited has called an Extraordinary General Meeting (EGM) on September 17, 2025, to seek shareholder approval for a preferential issue of up to 14,40,920 equity shares at ₹3,470 per share (including a premium of ₹3,460), aggregating up to ~₹499.99 crore. All shares will be allotted to non-promoter institutional investors, including five SBI Mutual Fund/AIF schemes, Custody Bank of Japan (as Category I FPI), and Sanshi Fund-I. The capital is earmarked for capacity expansion: ₹187 crore for a Phase II factory building at Chakan (Pune), ₹102 crore for plant and machinery (including a new Bhiwadi, Rajasthan facility adding 90,000 MT capacity), ₹44 crore for an R&D and office building, ₹42 crore for land acquisition in Chennai, and ~₹125 crore for general corporate purposes. CARE Ratings has been appointed as the monitoring agency for use of proceeds, with deployment targeted before June 2027.
This is a ~₹500 crore capital raise that will dilute existing shareholders, but the strong participation of marquee institutional investors (predominantly SBI schemes) signals confidence in the company's growth story. Funds are aimed at meaningful capacity expansion, which could support future revenue growth, though near-term EPS dilution is expected. Stock may see a mixed reaction depending on investor views on dilution versus the growth opportunity.