The Board of Directors of the Company in their meeting today has approved Issue of 47,17,740 (Forty-Seven Lakh Seventeen Thousand Seven Hundred and Forty) equity shares on preferential ....
Awaiting price reaction for this filing.
Classic Filaments Limited's board approved issuing 47,17,740 equity shares on preferential basis to 53 non-promoter investors at Rs. 51.50 per share, raising approximately Rs. 242.96 crore. The company also plans to acquire Procasts Engineering Private Limited (51% stake for ~Rs. 12 crore) and Solven Power Systems Private Limited (75% stake for ~Rs. 2 crore). Procasts is engaged in natural and synthetic fibre fabrics with FY26 provisional turnover of Rs. 31.20 crore, while Solven Power is in structure steel fabrication with turnover of Rs. 34.50 crore. Additionally, the board approved a new IT division, increased borrowing limits to Rs. 100 crore, and various management appointments pending shareholder approval.
The preferential issue will dilute existing shareholders significantly with all new allottees holding 0% pre-issue stake. The acquisitions expand the company's business into new segments (aluminium dye casting and steel fabrication) aligned with the textile business. Shareholders should monitor the EGM for approval of these proposals.