Ramkrishna Forgings Limited has announced the allotment of 6,40,000 equity shares following the conversion of warrants issued on a preferential basis. The development was disclosed to stock exchanges under Regulation 30 of SEBI Listing Regulations.

This move comes as part of the company’s earlier plan to raise capital through warrants issued to promoter group entity Riddhi Portfolio Private Limited.

Key Details of the Allotment

The company’s Capital Market Committee, in its meeting held on March 27, 2026, approved:

• Conversion of 6,40,000 warrants into equity shares
• Allotment of 6,40,000 equity shares of face value ₹2 each

The conversion was carried out after receiving:

• ₹100.80 crore from the warrant holder
• Payment at ₹1,575 per warrant, representing 75 percent of the total issue price

The total issue price per warrant was ₹2,100, which includes:

• ₹525 paid earlier at the time of warrant allotment
• ₹1,575 paid at the time of conversion

Background of Warrant Issue

The warrants were originally allotted on August 14, 2025, when the company issued:

• 9,75,000 warrants
• Each warrant convertible into one equity share

These warrants were allotted on a preferential basis to:

• Riddhi Portfolio Private Limited, a promoter group entity

After the current conversion:

• 6,40,000 warrants have been converted
• 3,35,000 warrants remain pending for conversion

Impact on Share Capital

Following the allotment of equity shares, the company’s paid-up equity share capital has increased.

Updated Capital Structure

• Total paid-up capital: ₹36,33,41,208
• Total number of shares: 18,16,70,604 equity shares of ₹2 each

The newly allotted shares will rank:

• At par with existing equity shares
• Carrying the same rights, including voting and dividend rights

Preferential Allotment Explained

The transaction was executed through a preferential allotment, which is a method used by companies to raise funds by issuing securities to selected investors.

Key features include:

• Allocation to specific investors instead of public issue
• Faster capital raising process
• Often used for strategic investments or promoter participation

In this case, the allotment strengthens promoter holding and capital base.

Financial Implications

The company has raised:

• ₹100.80 crore through this conversion exercise

This inflow can be used for:

• Business expansion
• Debt reduction
• Working capital requirements
• General corporate purposes

Raising funds through warrants allows companies to:

• Receive funds in phases
• Align capital inflow with business needs

Remaining Warrants and Future Dilution

After this conversion, a portion of warrants still remains unexercised.

• Pending warrants: 3,35,000

If these are converted in the future, it may lead to:

• Further increase in equity share capital
• Additional dilution of shareholding

However, such conversions also bring additional capital inflow into the company.

Market Perspective

From an investor perspective, warrant conversion and equity allotment are important developments because they:

• Indicate promoter confidence in the company
• Strengthen the balance sheet through capital infusion
• Impact the equity base and earnings per share

Preferential allotments to promoters are often seen as a positive signal, as they reflect long-term commitment.

About Ramkrishna Forgings Limited

Ramkrishna Forgings Limited is a leading player in the forging and manufacturing sector, supplying components primarily to:

• Automotive industry
• Railways
• Industrial sectors

The company is known for its engineering capabilities and global presence, catering to both domestic and international markets.

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