Preferential Allotment Strategy:
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Precision Wires India Ltd has received in-principle approval from the National Stock Exchange (NSE) to issue equity shares via warrant conversion at Rs 151 per share.
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The allotment will be executed under a preferential issuance framework, following shareholder approval secured on June 17, 2025.
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The valuation was independently assessed by Registered Valuer Gaurang Shah, who pegged the fair value of equity shares and convertible warrants at Rs 150.43 as of May 16, 2025.
Investor Participation and Shareholding Impact:
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Saraswati Commercial (India) Ltd will acquire 10 lakh equity shares and 20 lakh convertible warrants, raising its post-issue holding to 1.78 percent of Precision Wires’ fully diluted equity.
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The total investment amounts to Rs 45.3 crore, with 25 percent payable upfront for warrants and the balance due within six months of allotment.
Regulatory Compliance and Valuation Methodology:
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The valuation adhered to SEBI’s ICDR Regulations and ICAI Valuation Standards, using both Market and Cost Approaches.
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NSE’s approval followed three rounds of addendums to the original valuation report, ensuring full regulatory transparency.
Strategic Outlook:
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The capital infusion is expected to support Precision Wires’ expansion in copper winding wire production, driven by demand from power, automotive, and EV sectors.
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The company’s Silvassa facility and upcoming capacity additions position it to benefit from infrastructure and electrification tailwinds.
Closing Insight: This warrant conversion marks a pivotal step in Precision Wires’ capital strategy, reinforcing investor confidence and aligning with India’s industrial growth narrative.
Source: Moneycontrol – July 17, 2025 Rediff Money – July 24, 2025 CNBC TV18 – July 24, 2025 Precision Wires Valuation Report – May 16, 2025