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Published: April 15, 2024
Updated: April 15, 2024
ASM Technologies, a publicly listed company and a pioneer in design-led manufacturing in the semiconductor and automotive industries, recently announced a preferential allotment of equity shares and warrants amounting to Rs 1,701 million, of which Rs 700 million has already been raised and the balance of Rs 1,001 million will be received over a period of 18 months. The fund raise, led by leading stock market investor Mukul Agrawal in which the promoters also participated, is part of a larger fund raise in pursuance of its strategic objectives to be a global leader in designled manufacturing. With a legacy of over three decades, ASM is poised to utilize the proceeds of the issue to fuel organic and inorganic growth opportunities.
The company’s strategic initiatives include funding for takeovers and acquisitions in the increasing space of design-led manufacturing. Additionally, ASM plans to channel the raised capital towards addressing general corporate exigencies, investment in subsidiaries, joint ventures, associates, etc, with an aim to enhance both scale and competence, setting the stage for accelerated growth over the next three years.
Talking about the announcements, Rabindra Srikantan, Managing Director, emphasized the transformative impact of the preferential issue on the company’s future prospects, remarking, “The forthcoming fund-raise marks a pivotal moment for ASM Technologies Limited. With a clear focus on strategic growth, this infusion of capital not only bolsters our financial resilience but also underscores our commitment to innovation and market leadership. We view this as a strategic enabler to further enhance our capabilities, drive technological advancements, and solidify our presence in key global markets. This initiative aligns seamlessly with our overarching vision to deliver unparalleled value to our stakeholders and propel ASM to new heights of success.”
Further more, the approval for the preferential issue of equity shares and warrants was obtained in compliance with the regulations laid down by SEBI, and subsequent in-principle approval granted by BSE. The decision to allot 8,00,000 equity Shares and 28,14,390 warrants at an issue price of Rs 470.70, including a premium of Rs 460.70, underscores the company’s strategic move to enhance shareholder value and capitalize on growth opportunities.
The company has multiple delivery locations in India and a global presence in the US, Singapore, the UK, Canada, Japan, Thailand and Mexico. Currently, the stock with a face value of Rs 10 is being quoted at Rs 945, with a yearly high-low of Rs 1,118 and Rs 365 respectively, and a market capitalisation of Rs 1,037 crore. The promoter group holds 62.79% stake as per December 31, 2023 data.
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