Yuken India Board to Decide on Equity Share Issue to Promoter: Strategic Expansion in the Offing

Yuken India Ltd has informed that its Board of Directors will consider a preferential allotment of equity shares to its promoter, Yuken Kogyo Company Limited, to raise about ₹62.9 crore. Up to 10 lakh equity shares at ₹629 per share (inclusive of a ₹619 premium per share) that constitutes 4.62% of the post-issue paid-up capital is proposed for allotment. This action is aimed at backing business growth and new manufacturing lines, with priority in exporting to Yuken Group businesses as well as other international customers.

 

The Board's action takes a shareholder mandate by way of postal ballot, which has been handled by KFin Technologies. The preferential issue adheres to SEBI (ICDR) Regulations, 2018, with clear pricing and regulatory compliance. The promoter owns 40% of the equity of the company at present, and this issue will further consolidate its holding.

 

Yuken India, a prominent hydraulic products manufacturer, has witnessed its share price fluctuating around ₹900 in recent times, with a market capitalization of more than ₹1,100 crore. The company also announced a final dividend of ₹1.5 per share for FY24, indicating strong financial health. This injection of capital is likely to boost Yuken India's growth curve and strengthen its global presence.

 

Sources: Yuken India (Company Notice), EquityBulls, Economic Times, Moneycontrol