Raymond stock in focus as board clears raising of funds via preferential allotment

Shares of Raymond Ltd are in focus today after the company’s board of directors on Tuesday approved fundraising worth Rs 214.71 crore. On Tuesday, Raymond stock ended 11% higher at Rs 858.35. Market cap of the firm stood at Rs 5,459 crore. The conglomerate said it plans to raise funds through the preferential allotment of 33.28 lakh convertible warrants at an issue price of Rs 645 per warrant. The warrants will be allotted on a private placement basis to Minerva Ventures Fund.

This is, however, subject to members’ approval and other applicable statutory and regulatory approvals.

Each warrant will entitle the holder to subscribe to one fully paid-up equity share of face value Rs 10 at an issue price of Rs 645 per share, including a premium of Rs 635 per share.

The warrants can be converted into equity shares, in one or more tranches, within 18 months from the date of allotment. “Unconverted Warrants shall lapse upon the expiry of 18 months, and the upfront consideration paid towards such Warrants shall stand forfeited,” the company added.

In terms of technicals, the relative strength index (RSI) of the stock stands at 82, signaling the stock is overbought on technical charts. Raymond shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.  Shares of Raymond have gained 119 per cent in six months and risen 96% this year.

Raymond Q1 results 

Raymond reported a 50% year-on-year surge in consolidated net profit to Rs 30.9 crore led by a 13.1% rise in total income to Rs 628 crore. The earnings growth reflects stellar operational momentum in its engineering divisions, with the Aerospace & Defence segment surging 40.4% YoY.