Ramkrishna Forgings receives board approval for raising funds via QIP

The second-largest forging company in the nation, Ramkrishna Forgings, has received board approval to raise up to Rs 1,000 crore through a qualified institutional placement (QIP) issuance, according to a regulatory filing on September 30.

The board, in its meeting held today, approved the “raising of funds up to Rs 1,000 crore by way of issuance of equity shares through qualified institutional placement", the company said.

The total number of securities proposed to be issued through QIP “shall be determined after fixation of issue price" at the time of issuance of securities, it informed the stock exchanges.

On October 28, the firm has summoned a special general meeting to ask shareholders to approve the fund-raise plan through the QIP method.

Ramkrishna Forgings further stated that upon receipt of a payment totaling 70.72 crore, its board has approved the conversion of 46 lakh warrants into equity shares.

The company's capital has increased to 32.9 crore thanks to the aforementioned equity share offering, which consists of 16.44 crore fully paid-up equity shares.

Ramkrishna Forgings reported a net profit of 76.97 crore for the three months ended in June 2023, up 63 percent from the 47.26 crore reported in the same period the previous year.