Amic Forging approves ₹221 crore raise at 2026 EGM

What shareholders approved on June 5, 2026

Amic Forging Limited concluded its Extraordinary General Meeting (EGM) on June 5, 2026 with shareholder approval for a preferential issue of equity shares and convertible warrants to non-promoters. The total size of the proposed fundraising is ₹220.99 crore. Alongside the fundraise, shareholders approved an increase in the company’s authorised share capital to support the expanded capital structure.

The approved proposal covers two instruments: a small equity allotment and a larger warrant issuance, both priced at the same level. The company has said the proceeds will be used for capital expenditure and general corporate purposes, with a defined allocation for a Phase-III expansion project.

Preferential issue structure: equity shares and warrants

The EGM authorised the issuance of up to 26,200 fully paid-up equity shares and up to 14,22,900 convertible warrants, on a preferential basis to identified non-promoter allottees. The issue price for both the equity shares and the warrants was fixed at ₹1,525 per share or warrant. This price includes a securities premium of ₹1,515 per instrument over the face value of ₹10.

The “relevant date” used for determining the price was May 6, 2026. Warrants carry the right to convert into equity shares within 18 months from the date of allotment, with each warrant convertible into one equity share.

Key allottees named in the resolutions

For the equity portion, Kvasa Capital was identified as the sole allottee for the 26,200 equity shares. For the warrant portion, the company identified 11 entities as allottees. The list included Motilal Oswal Financial Services Limited and Calliope Capital Advisors LLP.

Separately, the company also stated that the equity shares are proposed to be allotted to Kvasa Capital (described as a Mukul Agrawal company) under the non-promoter category on a private placement basis, in line with Sections 42 and 62 of the Companies Act, 2013 and SEBI ICDR Regulations, 2018.

Warrant conversion and payment schedule

The warrants are structured with a staged payment mechanism. Warrant subscribers are required to pay 25% of the issue price at the time of subscription, with the balance payable when the warrant is exercised and converted into equity.

At the approved issue price of ₹1,525 per warrant, the upfront payment works out to ₹381.25 per warrant, and the remaining amount payable at exercise is ₹1,143.75 per warrant. The conversion window is up to 18 months from the date of allotment, as approved.

Authorised share capital increased to ₹15 crore

The EGM also approved changes to the company’s capital structure, increasing authorised share capital from ₹12 crore to ₹15 crore. The increase involves the creation of 30,00,000 additional equity shares of face value ₹10 each.

The board had earlier approved this authorised capital increase, along with a consequential amendment to Clause V of the Memorandum of Association.

Use of funds: Phase-III capex and corporate purposes

Amic Forging clarified that the total proceeds of ₹220.99 crore are intended for capital expenditure and general corporate purposes. Out of this, ₹165.75 crore is earmarked for the Phase-III expansion project.

The Phase-III plan includes establishing a Heavy Forging and Integrated Machining Facility. The disclosures also referenced a 5,000 ton Open Die Hydraulic Forging Press and supporting infrastructure as part of the expansion.

The remaining ₹55.24 crore is allocated for general corporate purposes, as stated in the updated disclosures.

Corrigendum filed ahead of the EGM and monitoring mechanism

The company filed a corrigendum to its EGM notice on May 23, 2026, providing more precise information for the preferential issue planned to raise about ₹220.99 crore. The corrigendum also revised the list of proposed allottees, including a change from an individual to a HUF classification for one warrant allottee: Mr. Ankit Madhogaria was replaced with Ankit Madhogaria (HUF) for 10,000 warrants.

The company stated that such classification changes did not affect the total post-issue share capital. It also disclosed that CRISIL Ratings Limited was appointed to monitor the utilisation of the issue proceeds.

The company indicated that funds are to be utilised within 12 months, with any unutilised amount carried forward as per board decisions.

What the post-issue shareholding disclosures indicate

In the corrigendum disclosures, Amic Forging indicated an expectation of 12,997,935 shares outstanding post-issue. Promoter holding was anticipated at 63,79,010 shares, representing 49.08%.

The same disclosure set out a change in the overall split: promoter holding reducing from 55.24% to 49.08%, while public or non-promoter holding increases from 44.76% to 50.92%. The document also mentioned certain post-issue holding percentages for select allottees, including Kvasa Capital (0.20% post-issue), Motilal Oswal Financial Services (4.34% post-issue), and Calliope Capital Advisors LLP (2.02% post-issue).

Key figures at a glance

Timeline of approvals and disclosures

Market impact: what this changes for investors to track

For investors, the immediate measurable outcomes are the approved terms: the issue price of ₹1,525, the instrument mix (equity plus warrants), and the 18-month conversion window for warrants. The allocation of proceeds is also specific: ₹165.75 crore for a Phase-III expansion and ₹55.24 crore for general corporate purposes.

The post-issue shareholding disclosures point to a lower promoter percentage and a higher public or non-promoter share, as indicated in the company’s stated expectations. Investors tracking dilution dynamics typically monitor how much of the proposed warrant capital ultimately converts into equity and the timing of those conversions, since warrant holders pay the majority of the money at exercise.

Why the fundraising matters: linking capex plan to capital structure

The approved authorised capital increase to ₹15 crore creates headroom for the preferential allotment and any subsequent issuance required by the approved instruments. The stated Phase-III plan to add heavy forging and integrated machining capacity, including the 5,000 ton open die hydraulic forging press and related infrastructure, is the key stated operational driver behind the capex allocation.

On process, the company’s appointment of a monitoring agency for fund utilisation, and the issuance of a corrigendum clarifying allottees and usage splits, indicates that the company has framed the transaction with detailed disclosures around deployment and ownership impact.

Conclusion

Amic Forging’s June 5, 2026 EGM approved a ₹220.99 crore preferential issue via equity shares and convertible warrants to non-promoters, along with an authorised capital increase from ₹12 crore to ₹15 crore. The company has stated that ₹165.75 crore will be used for Phase-III expansion capex and ₹55.24 crore for general corporate purposes, with CRISIL Ratings Limited monitoring fund utilisation. The next key milestones for investors will be the actual allotment, the pace of warrant conversions within the 18-month window, and updates on Phase-III execution as funds are deployed.