Raising of Funds by issuing of Equity shares on Preferential basis
SINGERIND · price
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Singer India's board approved issuing up to 5,65,397 equity shares (face value Rs. 2) on a preferential basis to Sweden-based VSM Group Aktiebolag, a non-promoter entity, at Rs. 79.59 per share for an aggregate of about Rs. 4.50 crore. Post-issue, VSM Group will hold about 0.91% in the company. The board also approved amending trademark license agreements with Singer Sourcing Limited LLC, USA, to allow manufacturing of Zig-Zag machines under the "Singer" and "Merritt" brands in India and explore exports. The company also reported Q2 FY26 revenue of Rs. 137.90 crore (up about 30% YoY) and profit of Rs. 3.83 crore (vs Rs. 1.27 crore YoY), while H1 FY26 revenue rose to Rs. 230 crore. Shareholder approval will be sought via postal ballot.
The preferential issue is a small fund raise (~Rs. 4.5 crore) from a strategic foreign industry player, which is mildly positive for credibility but only dilutes equity by ~0.91%, so limited impact per share. The trademark amendment opens a new revenue stream by allowing in-house manufacturing of Zig-Zag machines in India. Improved Q2 profitability signals recovery, though the H1 FY26 profit is slightly lower YoY.