Ramkrishna Forgings has received the necessary board approvals to raise up to Rs 1,000 crore through a qualified institutional placement (QIP), the company's Managing Director Naresh Jalan said Tuesday.

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In an interview with CNBC-TV18, Jalan said, "...a lot of consolidation is happening in the forging industry. So, we feel that there are a lot of opportunities which we are facing and if there is a right opportunity and right segment where we can spend money – that is the reason we have taken this enabling regulation.”

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, the company said in a filing with the stock exchanges.

The company has also received board approval for the conversion of 46 lakh warrants into equity shares. This will be on receipt of an amount totaling Rs 70.72 crore. After the issue of these equity shares, the capital of the company increased to Rs 32.9 crore, consisting of 16.44 crore fully paid-up equity shares.

Ramkrishna Forgings is into rolled, forged, and machined goods. In August, the company secured an order valued at approximately Rs 74 crore (equivalent to 8.25 million Euros) from a well-known European OEM (original equipment manufacturer) and tier-1 supplier. Under the terms of the agreement, Ramkrishna Forgings will provide front and rear axle components for a duration of five years, per their stock exchange filing.

Jalan also pointed out that the company is scaling up on auto operations exceptionally well and that the Titagarh Rail joint venture (JV) will be in place by the first half of 2026.

The company's stock has witnessed a remarkable surge of over 214 percent in the past year.

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(Edited by : Shweta Mungre)

First Published:Oct 3, 2023 5:07 PM IST