This Multibagger stock operating in the forgings sector to raise up to 1000 crores by way of issuance of equity shares through Qualified Institutional placement.
At 12:35 p.m the shares of Ramkrishna Forgings were trading at Rs 641 and the market capitalisation of the company is 10,244 Cr.
As per the company’s filing, on September 30, 2023 the board of Ramkrishna forgings has approved to raise up to 1000 Cr by way of issuance of equity shares through Qualified Institutional placement. The company has called for an extraordinary general meeting on October 28 to seek approval from shareholders for the fund-raise plan.
The board also approved the conversion of 46 lakh warrants into equity shares upon receipt of an amount aggregating to Rs 70.72 crore. Pursuant to the aforesaid issue of equity shares, the capital of the company stands increased to ₹32.9 crore, consisting of 16.44 crore fully paid-up equity shares.
Ramkrishna Forgings has delivered a multibagger returns of 126 percent in six months and 214 percent in one year. A shareholder’s investment of Rs 1 lakh would be worth Rs 3.14 Lakh in one year.
The company’s revenue has increased by 37.61 percent from 2,320.25 Cr in FY22 to 3,192.9 Cr in FY23, accompanied by increasing profits from 198.03 Cr to 248.11 Cr.
The company reported a return on equity (ROE) of 21.01 percent and 18.73 percent, this indicates that the company is making good returns on its equity and is making efficient utilisation of the company’s resources.
According to the latest shareholding data available for the June 2023 quarter, the company’s Promoters hold 46.27 percent stake, the Domestic Institutional Investors hold 4.21 percent and the Foreign Institutional Investors (FII) hold 16.34 percent.
Ramkrishna Forgings Ltd is primarily engaged in manufacturing and sale of forged components of automobiles, railway wagons & coaches and engineering parts, it is the second largest forging player in the country.
Written by: Bharath K.S
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