Ramkrishna Forgings Limited has informed the Exchange about Preferential Issue of Convertible Warrants
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Awaiting price reaction for this filing.
The Board approved issuing up to 9,75,000 convertible warrants to promoter entity Riddhi Portfolio Private Limited at Rs. 2,100 per warrant, aggregating Rs. 204.75 crores. The issue price is approximately 2.95 times the floor price of Rs. 712.34, and promoter holding will rise from 33.45% to 33.81% on full conversion. 25% of the warrant price is payable upfront with the balance due within 18 months on conversion. The move is subject to shareholder approval at an EGM on June 28, 2025. Additionally, the Board declared a 2nd interim dividend of Re. 1 per share (face value Rs. 2) with a record date of June 6, 2025. The Q4/FY25 audited results carry a modified opinion after an external fact-finding exercise revealed inventory overstatement errors of Rs. 220.52 crores in FY25 and Rs. 50.22 crores in FY24, causing a net adverse impact of Rs. 202.60 crores (6.73%) on net worth. The company also appointed a new secretarial auditor and cost auditor.
The warrant issue signals continued promoter confidence and capital infusion at a substantial premium to floor price, which is generally seen as supportive. However, the Rs. 202.60 crore net worth hit from historical inventory errors and the modified audit opinion may weigh on sentiment. The small interim dividend of Re. 1 per share offers limited yield support.