Vardhman Special Steels Limited has informed the Exchange regarding Corrigendum to Notice of Extra Ordinary General Meeting to be held on Jun 25, 2025
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Vardhman Special Steels has issued a corrigendum to the notice of its EGM scheduled for June 25, 2025, which will consider a preferential issue of equity shares. The funds are proposed to be used for setting up a greenfield steel manufacturing plant at Ludhiana (INR 134.9 crore), capital expenditure at the existing plant (INR 100 crore), and repayment of working capital borrowings of INR 150 crore owed to SBI, Axis Bank, YES Bank, and CTBC Bank. The issue price has been fixed at Rs. 260.60 per share, based on a valuation report from AlphaValue Consulting Valuation LLP. Post-issue, the promoter group's stake will reduce from 60.37% to 51.13%, while the public shareholding will increase from 39.63% to 48.87%, with total shares rising from 8.17 crore to 9.65 crore. The company will keep the issue proceeds in a separate bank account until fully utilized.
The preferential issue will result in equity dilution for existing shareholders, with the promoter group stake falling below the current level. The fund raise supports a new greenfield plant expansion and reduces working capital debt, which could be positive for long-term growth but adds roughly 1.48 crore new shares to the share capital.