W.S. Industries (India) Limited, in a significant move to bolster its capital structure and fuel business expansion, has announced a comprehensive ₹440 crore fundraising initiative through a preferential issue of equity shares and convertible warrants, as approved during its Board Meeting held on June 27, 2025.

The board has approved the issuance of 1.65 crore equity shares and 2.75 crore convertible warrants, both priced at ₹100 per security, including a premium of ₹90 on the face value of ₹10. This issue will be executed in accordance with Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended.

Breakup of Capital Raise:

1. Equity Shares Issue (₹165 crore)
   A total of 1,65,00,000 fully paid-up equity shares will be issued to non-promoter investors, including Foreign Portfolio Investors (FPIs). The price has been set at ₹100 per share.
   Key Allottees Include:

   • M7 Global Fund PCC – Cell Dewcap Fund: 95,00,000 shares

   • Sri Meenakshi Ammal Enterprises Pvt. Ltd.: 15,00,000 shares

   • Recubitech Pvt. Ltd.: 5,00,000 shares

   • VIKASA India EIF I Fund (FPI): 50,00,000 shares

2. Convertible Warrants Issue (₹275 crore)
   The company will issue 2,75,00,000 convertible warrants, each priced at ₹100 (including a ₹90 premium). These warrants can be converted into one equity share per warrant within 18 months from the allotment date, in one or more tranches.
   25% of the issue price is payable upfront, and the rest upon conversion.
   Key Allottees Include:

   • Sri Meenakshi Ammal Enterprises Pvt. Ltd.: 80,00,000 warrants

   • Recubitech Pvt. Ltd.: 25,00,000 warrants

   • VIKASA India EIF I Fund: 50,00,000 warrants

   • Promoters/Promoter Group:

     • Mr. Seyyadurai Nagarajan: 40,00,000 warrants

     • CMK Projects Pvt. Ltd.: 40,00,000 warrants

     • Mr. S. Anandavadivel: 5,00,000 warrants

     • Mr. S. Aravindan: 5,00,000 warrants

     • Mr. Sanu Raghav: 10,00,000 warrants

     • Mr. Vinu Pranav: 10,00,000 warrants

     • Mr. Dhanu Adhav: 10,00,000 warrants

Expansion of Authorised Capital

In preparation for this substantial infusion of capital, the board approved an increase in the authorised share capital from ₹100 crore to ₹125 crore. The existing structure of 8.5 crore equity shares and 15 lakh cumulative redeemable preference shares will be modified to accommodate 11 crore equity shares along with the same preference share count. This necessitates an amendment to Clause V of the Memorandum of Association.

Extraordinary General Meeting (EGM)

To formalise the issuance and authorised capital hike, the board will convene an EGM on July 25, 2025, at 2:30 PM through video conferencing or other audio-visual means, seeking approval from shareholders.

Appointment of Monitoring Agency

To ensure compliance with SEBI regulations, the board has appointed M/s. India Ratings and Research Pvt. Ltd. as the monitoring agency for the preferential issue, as required under the SEBI ICDR framework.

Regulatory and Shareholder Approvals Pending

All actions proposed are subject to necessary approvals from the shareholders, regulatory authorities, and adherence to applicable SEBI regulations, especially Regulation 164 of Chapter V of SEBI ICDR related to pricing of preferential issues.

The disclosure complies with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, along with the SEBI circular dated July 13, 2023 (SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123).

Strategic Significance of the Fundraising

The ₹440 crore infusion is expected to strengthen W.S. Industries’ balance sheet, aid in growth-oriented initiatives, support working capital needs, and improve financial flexibility. The blend of equity and convertible warrants suggests the company is balancing immediate liquidity needs with future capital structuring strategies.

The inclusion of both foreign investors and promoter group entities highlights confidence in the company’s vision and market prospects. With strategic investors such as VIKASA India EIF I Fund and M7 Global Fund, the company may also benefit from additional institutional oversight and governance.

Impact on Capital Structure

Upon full conversion of the warrants, there will be a significant increase in equity base, which will dilute existing shareholding but could simultaneously enhance market depth and float. Given the issue price of ₹100, significantly higher than face value, the issue also sends a positive signal regarding internal valuation confidence.

This proposed capital raise positions W.S. Industries (India) Limited for its next phase of strategic and operational execution, aligning with industry demand, technological upgrades, or potential diversification.

Conclusion

W.S. Industries’ latest board-approved initiative marks a transformational capital event, aligning regulatory compliance, strategic investor participation, and long-term business growth. With careful execution, shareholder support at the EGM, and regulatory clearance, the ₹440 crore fundraising may mark a turning point in the company’s corporate trajectory.

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