Ramkrishna Forgings Limited has informed the Exchange regarding allotment of 975000 warrants pursuant to Preferential Issue at its meeting held on August 14, 2025
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Ramkrishna Forgings has allotted 9,75,000 warrants to its promoter Riddhi Portfolio Private Limited on a preferential basis. Each warrant is priced at Rs. 2,100, taking the total deal size to about Rs. 204.75 crore. The promoter has paid 25% upfront (Rs. 51.19 crore), with the remaining 75% due upon conversion of each warrant into one equity share of Rs. 2 face value within 18 months. The Board approved this on May 31, 2025, shareholders approved it at an EGM on June 28, 2025, and BSE/NSE gave in-principle approvals on August 7, 2025. Since these are warrants and not shares, the company's paid-up equity capital does not change at this stage.
This is a promoter-led capital infusion, indicating the promoter's confidence and long-term commitment to the company. If the warrants are eventually converted, the equity base could expand by up to 9,75,000 shares, leading to mild dilution for existing shareholders. The stock may react based on how the Rs. 2,100 warrant strike price compares with current market price.