Salasar Techno shares hit upper circuit to hit new highs amid fundraising plans

Shares of Salasar Techno Engineering Ltd hit upper circuit limit of 10 per cent during the trading session on Thursday to hit new 52-week highs after the company announced to raise funds via preferential allotment of equity shares and warrants. The company informed about the same through an exchange filing during the session.

The company board of Salasar Techno Engineering met on Thursday, January 25, 2024 to consider and approve fundraising plans, amounting to Rs 806.4 crore, said the exchange filing. The company will allot equity shares to investors belonging to non-promoters, while warrants shall be issued to both promoters and non-promoter investors.

The company will be issuing and allotting up to 3.9 crore equity share having face value of Re 1 each, to the persons belonging to non-promoter or public category at an issue price of Rs 72 apiece payable in cash for aggregating amount of up to Rs 280.8 crore, said the exchange filing.

The company board also approved to issue and allot up to 7.3 crore fully convertible warrants convertible into equivalent number of fully paid up equity share of the company having face value of Re 1 each to the persons belonging to promoters and non-promoter category on a preferential basis at an issue price of Rs 72 apiece aggregating up to Rs 525.6 crore, it added.

Following the announcement of fundraising plans, shares of Salasar Techno Engineering surged 10 per cent, hitting its upper circuit limit and scaling a new 52-week high at Rs 120.93 on Thursday. The company was commanding a total market capitalization of close to Rs 4,000 crore.

The proposed allottees of equity shares and warrants proposed to be issued on preferential to the persons belonging to all categories shall also be entitled of 4 fully paid-up bonus shares for each equity share and warrants so issued, in the ratio of 4:1, as the issue price. The company board has already fixed February 1 as the record date for the bonus issue.

Subsequent to the issue, the company will also increase its authorised share capital and amend the capital clause of memorandum of association (MoA) of the company, subject to members’ approval. The company will be calling an extraordinary general meeting (EGM) on Monday, February 19, 2024 to seek approval for the above-mentioned proposals.

North Star Opportunities Fund, Intuitive Alpha Investment Fund, Virat Services LLP, NAV Capital Emerging Star Fund Tano Investment Opportunities Fund, Mariko Consultants and XCAP Investments are some of the proposed allottees for issue of preferential shares.

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Coeus Global Opportunities Fund, Vespara Fund, Elara India Opportunities Fund are some of the proposed allottees belonging to the non-promoter category. The warrants shall be converted into equity shares in a span of 18 months from the data of allotment.

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