Precision Wires India CCD issue: ₹150 cr BSE-NSE nod

What the approvals mean

Precision Wires India has received in-principle approval from both BSE and NSE for its proposed ₹150 crore preferential issue of compulsorily convertible debentures (CCDs). The approvals were granted on September 11, 2026, clearing an important listing-related step before the company proceeds with allotment. The fundraising plan is structured as a preferential issue to non-promoter allottees, and the company has stated that proceeds will be used for capital expenditure and working capital. The CCDs are described as unsecured, unrated, and unlisted, and will be issued in dematerialised form. The fundraise follows shareholder approval obtained earlier in September through an Extra-Ordinary General Meeting (EGM).

Exchange clearances and reference numbers

The company said it received in-principle approvals from BSE Limited and the National Stock Exchange of India Limited on September 11, 2026. BSE’s reference number for the approval is LOD/PREF/KS/FIP/775/2026-27. NSE’s reference number is NSE/LIST/56844. These approvals relate to the proposed preferential allotment of 37,50,000 CCDs at ₹400 each. The company has also stated it will proceed with allotment within statutory timelines under Chapter V of SEBI (ICDR) Regulations, 2018.

Shareholders’ vote at the EGM

The preferential issue was approved by shareholders at an EGM held on September 5, 2026. The special resolution was passed with 99.999% of votes cast in favour. The voting was supported by 219 members, as stated in the disclosure. The outcome indicates near-unanimous approval for the company’s proposed fundraising and the associated conversion into equity shares. The approvals from exchanges came after this shareholder vote, which is typically required for preferential allotments.

Key terms of the CCD issuance

Precision Wires India plans to issue 37,50,000 CCDs with a face value of ₹400 per CCD, raising ₹150 crore in total (37,50,000 × ₹400). The CCDs carry a coupon rate of 12% per annum. The instruments are described as unsecured, unrated, and unlisted. The issue is proposed on a preferential basis to non-promoter allottees. The company has also stated that equity shares issued upon conversion will rank pari-passu with existing shares, including dividend and voting rights, and will be subject to SEBI ICDR lock-in requirements.

Conversion structure and timelines

Each CCD will compulsorily convert into one fully paid-up equity share on a 1:1 basis. The conversion price is ₹400 per share, comprising an equity share face value of ₹1 and a premium of ₹399. The CCD holder can exercise conversion anytime after 12 months and before 18 months from the allotment date. If the investor does not exercise the option during this window, conversion will occur automatically on the last day of the 18th month. Interest is stated to be payable in three instalments after 180 days, 360 days, and for the remaining period up to conversion.

Proposed allottees and allocation

The preferential issue is proposed to two non-promoter investors, as identified in the updated notice and corrigendum. The proposed allottees are AADI Financial Advisors LLP and Anchorage Capital Scheme III (Category II AIF). The allocation disclosed includes 17,50,000 CCDs to AADI Financial Advisors LLP and 20,00,000 CCDs to Anchorage Capital Scheme III. The proposed consideration is split as ₹70 crore from AADI Financial Advisors LLP and ₹80 crore from Anchorage Capital Scheme III, totalling ₹150 crore. The disclosure also lists ultimate beneficial owners for AADI Financial Advisors LLP as Lata Bhanshali, Akash Bhanshali, and Payal Bhanshali, and states that the sponsor of Anchorage Capital Scheme III is Rohit Kothari.

How the company plans to use ₹150 crore

A corrigendum issued on August 21, 2026, outlines a two-part utilisation plan totalling ₹150 crore. Working capital is the larger component and is explicitly linked to copper procurement and liabilities. Expansion is the second component and covers capex, modernisation projects, new plant and machinery, and land acquisition. The company also stated that pending utilisation, proceeds will be invested in money market instruments or scheduled commercial bank deposits.

Dilution and promoter holding impact

The company’s corrigendum also provides an indication of how holdings could change after conversion. Promoter and promoter group holding is expected to adjust from 56.62% pre-issue to 55.48% post-conversion of CCDs. This is linked to the conversion of CCDs into equity shares, which would result in the issuance of 37,50,000 equity shares of face value Re. 1 each. The allotment is proposed to non-promoter entities, and any changes in shareholding are tied to conversion and subsequent equity issuance.

Operating context cited by the company

The disclosures link working capital needs to rising copper prices and related requirements for copper procurement and liabilities. The company has also referenced capacity expansion and modernisation at its Silvassa plant. Separately, it has been stated that the Silvassa modernisation expansion project capacity was increased to 4,620 MT per annum. The company also referenced a solid Q1 FY27 performance where net profit rose 71.5% YoY to ₹46.45 crore.

Key facts at a glance

The CCD issue is sized at ₹150 crore and is structured through a preferential allotment route. The exchanges have issued in-principle approvals, and shareholders have already voted in favour with a near-unanimous majority. The conversion terms set a defined window between 12 and 18 months, with automatic conversion at the end of 18 months if not exercised earlier. The identified non-promoter subscribers and the use-of-proceeds schedule provide clarity on intended capital deployment.

What to watch next

The company has stated it will proceed with allotment within statutory timelines under SEBI (ICDR) Regulations, 2018. Investors will track the actual allotment date because it starts the clock for the 12 to 18-month conversion window and the interest instalment schedule. Updates around deployment of funds toward working capital and the Silvassa modernisation and expansion plan are also likely to remain in focus, based on the utilisation plan disclosed.