30-Nov-2023
2 mins read
Man Infraconstruction experienced a remarkable surge of over 3% in its shares, propelling them to a new 52-week high at Rs 195.80. This surge elevated the company’s total market capitalization to over Rs 7,250 crore. The rise came on the heels of the company’s recent approval for a significant fund-raising endeavour through preferential allotment.
Fund-raising Approval and Issuance of Convertible Equity Warrants
Man Infra’s board recently approved a fund-raising initiative, targeting an approximate amount of Rs 550 crore. The methodology outlined for this involved the issuance of convertible equity warrants via preferential issue, pending requisite statutory and regulatory approvals. The process will encompass seeking shareholders’ consent where necessary, as detailed in the exchange filing.
The company articulated its strategy, stating, “The funds will be raised through issue and allotment of up to 3,55,05,000 warrants, with each warrant convertible into one equity share, having a face value of Rs 2 each on a preferential basis at an issue price of Rs 155 per warrant. The total fund to be raised amounts to Rs 550 crores.”
Market Response and Performance
Following the announcement, Man Infra’s shares surged past the Rs 195.80 mark, marking a new 52-week high and emphasizing the company’s heightened market presence. Notably, the stock had closed at Rs 189.45 in the preceding trading session.
The market has witnessed Man Infra’s shares deliver significant returns, soaring approximately 200% from its 52-week low of Rs 66.25 in March 2023. Over the last month, the stock has surged by about 30% while showcasing an impressive 111% increase in the past six months. Notably, its performance in 2023 has seen a striking gain of nearly 160%.
Allottees and Strategic Growth Plans
The company has successfully allotted convertible warrants to around 134 investors from the non-promoter category. Notably, among these investors are also employees affiliated with the group. Diverse entities such as Quant Mutual Fund, Forbes EMF, Minerva Ventures Fund, Tano Investment Opportunities Fund, Omkara Capital, Prabhudas Lilladher Advisory Services, and others are part of the list of allottees.
Man Infra construction expressed its vision for robust future growth within the real estate sector. The company has deemed it a strategic priority to expand its real estate business through various means, including acquiring new projects, expediting ongoing project completion, and augmenting its overall presence in the sector.
Long-Term Capital Requirements and Company Focus
To achieve its outlined objectives, the company articulated its necessity for long-term capital resources. Its integrated EPC expertise spans across various sectors, encompassing port, residential, commercial, industrial, and road construction segments, showcasing its diverse capabilities and experience within the industry. These projects are spread across different regions in India, demonstrating the company’s wide-ranging footprint and execution capabilities.