Amic Forging EGM clears ₹221 crore fund raise in 2026

What shareholders approved on June 5

Amic Forging Limited said it concluded its Extraordinary General Meeting (EGM) on June 5, 2026, with shareholders approving a preferential issue of equity shares and warrants aggregating ₹220.99 crore. The company also received approval to increase its authorised share capital to ₹15.00 crore. According to the scrutinizer’s report cited by the company, all resolutions were passed with 100% of the votes cast in favour. A total of 13 members participated in the voting process, casting 6,272,450 votes.

The approvals cover a capital-raising plan through a mix of equity shares and convertible warrants to identified non-promoter allottees. The company has positioned the fund raise as a balance-sheet and capacity-supporting step, with a large part of the proceeds directed to an expansion project. Alongside the fund raise, the EGM cleared changes to the company’s capital structure required to accommodate the issuance.

Preferential issue structure: shares and warrants

The EGM authorised the issuance of 26,200 equity shares and 1,422,900 warrants to identified non-promoter allottees. The issue price for both instruments was fixed at ₹1,525 per equity share or warrant, including a premium of ₹1,515. The relevant date for price determination was May 6, 2026.

Kvasa Capital was identified as the sole allottee for the equity shares. For the warrants, the company identified 11 entities as allottees, including Motilal Oswal Financial Services Limited and Calliope Capital Advisors LLP.

Warrants are convertible into equity shares within 18 months from the date of allotment. The payment structure requires 25% of the warrant issue price at subscription, with the remaining 75% payable at the time of exercise.

Authorised share capital increased to ₹15 crore

Shareholders also approved the alteration of the capital structure to increase the authorised share capital from ₹12.00 crore to ₹15.00 crore. The company said this increase involves creating 3,000,000 additional equity shares of face value ₹10 each. The authorised capital expansion is designed to enable the company to carry out the preferential allotment and issue of warrants.

The EGM agenda also included regularisation of two director appointments, as referenced in the company’s disclosures around the meeting notice. The scrutinizer’s report confirmed that all four resolutions placed before shareholders were approved with unanimous voting.

Use of proceeds: capex dominates the allocation

Amic Forging disclosed that the total proceeds of the preferential issue, ₹220.99 crore, will be used for capital expenditure and general corporate purposes. Of the total, ₹165.75 crore has been earmarked for capital expenditure linked to a Phase-III expansion project. The company said the Phase-III plan includes establishing a Heavy Forging and Integrated Machining Facility.

The remaining ₹55.24 crore is intended for general corporate purposes. The company also stated that funds are to be utilised within 12 months, and that unutilised amounts may be carried forward based on a board decision.

CRISIL appointed as monitoring agency

The company informed shareholders that CRISIL Ratings Limited has been appointed as the monitoring agency to oversee utilisation of the issue proceeds. Monitoring agencies are typically used to provide periodic tracking on whether funds are being deployed for the stated objects.

In addition, the company’s corrigendum to the EGM notice included a link to a Practicing Company Secretary’s certificate, as part of the updated disclosures issued ahead of the shareholder meeting.

Timeline: board approval, corrigendum, and EGM outcome

The board approved the broader plan at its meeting on May 11, 2026, covering the authorised capital increase, a preferential equity issue, and issuance of convertible warrants aggregating up to ₹220.99 crore. The original EGM notice was issued on May 11, 2026, with a dispatch date of May 14, 2026. A corrigendum filed on May 23, 2026, provided more precise information before the EGM held on June 5, 2026.

The corrigendum also revised the list of proposed allottees. One stated change was replacing “Mr. Ankit Madhogaria” with “Ankit Madhogaria (HUF)” for 10,000 warrants, and the company noted that classification changes do not affect the total post-issue share capital.

Key numbers from the EGM resolutions

The preferential issue includes a small equity component and a substantially larger warrant component. The company also quantified the equity leg as aggregating up to ₹3.99 crore, with the warrant issuance aiming to raise ₹216.99 crore.

Shareholding disclosures tied to the issue

In the corrigendum, the company also provided post-issue shareholding expectations. It stated that after the issue, it expects to have 12,997,935 shares outstanding. Promoter holding was anticipated at 6,379,010 shares, or 49.08%.

The disclosures also indicated that promoter holding is expected to reduce from 55.24% to 49.08%, while public or non-promoter holding is expected to increase from 44.76% to 50.92%. The company also listed examples of revised allottees and expected post-issue percentages, including Kvasa Capital (0.20%), Motilal Oswal Financial Services (4.34%), and Calliope Capital Advisors LLP (2.02%).

Why the approvals matter for investors

The EGM outcome removes a key gating item for the fundraising plan, since shareholder approval is central to preferential issues and capital structure changes. It also provides clearer line-of-sight on how the company intends to deploy the capital, with a majority earmarked for Phase-III capacity creation and facility build-out. The warrant structure, with staged payment and an 18-month conversion window, sets out how and when potential equity dilution could occur if warrant holders exercise.

The appointment of a monitoring agency and the detailed proceeds split are practical disclosures investors often look for in preferential fund raises. In this case, the company has specifically linked the capex to a Heavy Forging and Integrated Machining Facility under Phase-III.

Conclusion

Amic Forging’s June 5, 2026 EGM delivered unanimous shareholder approval for a ₹220.99 crore preferential issue and an increase in authorised share capital to ₹15.00 crore. The company has allocated ₹165.75 crore to Phase-III expansion capex and ₹55.24 crore to general corporate purposes, with CRISIL Ratings Limited appointed to monitor utilisation. The next steps depend on completing the preferential allotment process and any other statutory and regulatory clearances referenced in the company’s disclosures.