Authum Investment & Infrastructure Ltd has approved the issuance of Non-Convertible Redeemable Preference Shares (NCRPS) aggregating ₹24.50 billion via private placement, pending shareholders’ nod. This capital raise aims to strengthen the company’s financial base and support its investment and infrastructure expansion plans.
Authum Investment & Infrastructure Ltd, a key player in the investment and infrastructure sector, has taken a significant step by approving the issuance of Non-Convertible Redeemable Preference Shares (NCRPS) aggregating ₹24.50 billion. The issuance is planned through a private placement basis and is subject to final approval by shareholders.
The board meeting held on October 16, 2025, formally considered and gave in-principle approval to this substantial capital-raising exercise. The issuance of NCRPS is expected to provide the company with a robust source of capital, supporting its ongoing and future investment initiatives across infrastructure projects. NCRPS are preferred shares that offer investors fixed returns and are redeemable, making them an attractive financing instrument that balances risk and return while preserving equity dilution.
This move comes as part of Authum’s broader strategic objective to strengthen its capital structure amid an evolving market environment. The funds raised through this issuance are anticipated to enhance liquidity, enable expansion plans, and potentially reduce cost of capital compared to other financing options.
Major Takeaways:
Capital Raise Size: Authum Investment & Infrastructure Ltd plans to raise ₹24.50 billion by issuing Non-Convertible Redeemable Preference Shares (NCRPS).
Issuance Mode: The shares will be issued on a private placement basis, subject to shareholders’ approval, ensuring alignment with regulatory and governance standards.
Purpose of Funds: Proceeds from the NCRPS issuance are likely earmarked for financing infrastructure projects, strategic investments, and strengthening financial flexibility.
Board Approval: The directive was formally approved during the company’s board meeting dated October 16, 2025, marking a key milestone in Authum’s fund-raising efforts.
NCRPS Features: These preference shares come with fixed dividends and redemption terms, attractive to investors seeking steady income with limited exposure to equity risk.
Strategic Implications: The issuance is anticipated to underpin Authum’s expansion roadmap while balancing capital costs and investment returns effectively.
Market Impact: This capital infusion is expected to boost investor confidence and may positively influence the company’s stock performance in the near term.
This comprehensive update is based on official disclosures made by Authum Investment & Infrastructure Ltd to the Bombay Stock Exchange and other market sources, reflecting the company's strategic financial decisions and growth aspirations.
Sources: BSE Announcement, InvestyWise, Economic Times Market News