The Board of Directors of the Company in their Board Meeting held today has considered and approved Issue of 47,17,740 (Forty-Seven Lakh Seventeen Thousand Seven Hundred and Forty) equity ....
Awaiting price reaction for this filing.
Classic Filaments Limited's board approved a preferential issue of 47,17,740 equity shares at Rs. 51.50 per share to 53 non-promoter investors, raising approximately Rs. 24.3 crore. The funds will be used to acquire 51% stake in Procasts Engineering Private Limited (approx. Rs. 12 crore) and 75% stake in Solven Power Systems Private Limited (approx. Rs. 2 crore). Procasts Engineering is in aluminium dye casting with FY26 provisional turnover of Rs. 31.20 crore, while Solven Power Systems is in structure steel fabrication with turnover of Rs. 34.50 crore. The board also approved increasing borrowing limits to Rs. 100 crore, raising the authorised share capital, and opening a new IT division. Five director appointments are being recommended for shareholder approval.
The preferential issue will dilute existing shareholders but brings in fresh capital for acquisitions that could expand the company's business. The acquisitions are in related businesses (textiles and fabrication), aligned with the company's main line of business. Shareholders should note the upcoming Extra Ordinary General Meeting for approvals.