Vardhman Special Steels Limited, a key player in India’s specialized steel manufacturing sector, has announced a major step toward strengthening its financial and strategic position. The company has formally intimated the stock exchanges — BSE and NSE — under Regulation 29(1)(d) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that it will seek shareholders’ approval to raise ₹384.9 crore via preferential allotment of equity shares.

The Extra-Ordinary General Meeting (EGM) of Vardhman Special Steels is scheduled for June 25, 2025, during which members will consider and approve the offer, issue, and allotment of 14,770,100 equity shares, each having a face value of ₹10, to Aichi Steel Corporation. Aichi Steel is a renowned Japanese corporation and a long-term strategic partner. The issue will be carried out on a private placement basis under the preferential route.

This significant capital infusion, totaling ₹3,849,088,060 (₹384.9 crore), is expected to enhance Vardhman’s operational capabilities, fund strategic expansion, and improve its financial strength. The preferential allotment to Aichi Steel reinforces the strong Indo-Japanese industrial partnership and reflects global investor confidence in India's manufacturing and steel sector.

The Board of Directors of Vardhman Special Steels had earlier approved this fund-raising proposal in their meeting held on May 29, 2025, and the intimation was duly filed with the stock exchanges. This current announcement is in continuation of the earlier disclosure and forms part of the structured corporate governance framework laid out by SEBI.

The issuance of 1.47 crore equity shares will follow all applicable regulations of SEBI, including pricing guidelines, lock-in periods, shareholder consent, and statutory approvals. The proposed transaction will not only inject long-term capital into the company but will also cement Aichi Steel’s growing equity interest in the Indian steelmaker, aligning their long-term business objectives.

Vardhman Special Steels, headquartered in Ludhiana, Punjab, is part of the reputed Vardhman Group, which has been delivering excellence in multiple sectors including yarns, fabrics, threads, garments, fibres, and specialty steels. Over the years, the company has evolved into a niche player, focusing on producing high-grade, customized steel products used in automotive, engineering, and other precision applications.

The proposed preferential issue will offer a strategic boost to Vardhman's ongoing modernization, capacity expansion, and R&D initiatives. The funds may also be allocated towards debt reduction, operational efficiency upgrades, and enhanced working capital requirements, improving overall margins and sustainability in a competitive industry landscape.

This preferential allotment will bring in direct equity investment from a global steel major, reflecting Vardhman’s alignment with international quality benchmarks and strategic vision. For Aichi Steel, the investment deepens their integration with India’s steel and manufacturing growth story.

Investors and analysts are expected to keenly follow the outcome of the EGM on June 25, 2025, as the allotment, upon approval, could result in shareholding pattern changes and may influence future collaborations, joint ventures, and operational synergies between the two companies.

The company’s commitment to transparency, regulatory compliance, and shareholder engagement is evident through timely disclosures and detailed investor communication. By leveraging this strategic capital raise, Vardhman Special Steels aims to accelerate growth, boost export competitiveness, and position itself as a preferred supplier of high-quality special steel products globally.

The upcoming EGM will be pivotal not just for Vardhman’s corporate journey but also for the broader steel ecosystem, where international collaborations, technology exchange, and supply chain resilience are increasingly vital.

In conclusion, Vardhman Special Steels Limited’s plan to raise ₹384.9 crore through preferential allotment of over 1.47 crore equity shares to Aichi Steel Corporation represents a landmark step in its growth strategy. It strengthens global partnerships, infuses vital capital, and reaffirms the company's commitment to long-term value creation for all stakeholders.

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