News

Published: January 27, 2024
Updated: January 27, 2024

Salasar Techno Engineering Soars to New Highs with Robust Fundraising Plans

Setting Records and Expanding Horizons

Shares of Salasar Techno Engineering Ltd experienced an impressive 10% surge, hitting the upper circuit and marking a new 52-week high at Rs 120.93 on Thursday. This surge was fueled by the company's strategic decision to raise funds through preferential allotment of equity shares and warrants.

Strategic Fundraising Plans Unveiled:

In a significant development, the company's board convened on January 25, 2024, to greenlight fundraising plans totaling Rs 806.4 crore. The decision involves the issuance of equity shares to non-promoters and warrants to both promoters and non-promoter investors.

Equity Shares Allotment to Non-Promoters:

Salasar Techno Engineering will issue up to 3.9 crore equity shares to non-promoters at an issue price of Rs 72 each, aggregating up to Rs 280.8 crore. This move enhances the company's financial standing while broadening its investor base.

Convertible Warrants for Promoters and Non-Promoters:

Additionally, the board approved the issuance of up to 7.3 crore fully convertible warrants at an issue price of Rs 72 apiece. These warrants will be convertible into an equivalent number of fully paid-up equity shares, aggregating up to Rs 525.6 crore. This dual approach aims to strengthen both promoter and non-promoter confidence in Salasar Techno Engineering.

Market Reaction and Record Date:

Following the announcement, the market responded with enthusiasm, propelling the company's shares to an upper circuit limit and achieving a new 52-week high. The total market capitalization reached close to Rs 4,000 crore, reflecting positive investor sentiment. The company has set February 1 as the record date for a bonus issue, further sweetening the deal for potential investors.

Bonus Issue and Future Plans:

The proposed allottees of equity shares and warrants will be entitled to a bonus issue of 4 fully paid-up shares for each equity share and warrant issued. The company plans to increase its authorized share capital post the fundraising and will seek members' approval in an extraordinary general meeting scheduled for February 19, 2024.

Diverse Allottees for Preferential Shares:

Several entities, including North Star Opportunities Fund, Intuitive Alpha Investment Fund, Virat Services LLP, NAV Capital Emerging Star Fund, Tano Investment Opportunities Fund, Mariko Consultants, and XCAP Investments, are among the proposed allottees for preferential shares. This diverse mix underlines the broad appeal of Salasar Techno Engineering's strategic moves.

A Bold Step Toward Growth:

Salasar Techno Engineering's proactive fundraising approach signals confidence in its growth trajectory. The infusion of capital, coupled with strategic partnerships, positions the company for expansion and success in the evolving market landscape. Investors keen on growth opportunities may find Salasar Techno Engineering an intriguing prospect amid its bold financial moves.