Precision Wires ₹150 Cr CCD Issue: EGM on Sept 5, 2026

What the corrigendum changes

Precision Wires India Ltd has issued a corrigendum dated August 21, 2026 to its Extraordinary General Meeting (EGM) notice. The EGM notice was originally dated August 10, 2026. The update clarifies the proposed utilisation of proceeds from a preferential issue of Compulsory Convertible Debentures (CCDs) and includes updated details such as proposed allottees and expected shareholding impact. The fundraising proposal itself remains subject to shareholder approval at the EGM.

EGM schedule and participation mode

The EGM is scheduled for Saturday, September 5, 2026 at 11:30 A.M. The meeting will be held through Video Conferencing (VC) or Other Audio Visual Means (OAVM), as stated in the notice details. The company has also disclosed key dates around remote e-voting and the cut-off date used for voting eligibility.

Preferential issue size and structure

Precision Wires India’s board has approved raising ₹150 crore through a preferential issue of 37,50,000 CCDs. The CCDs are proposed at an issue price of ₹400 each. The instruments are described as unsecured, unlisted, unrated, and issued in dematerialised form. The coupon rate is 12% per annum.

Conversion terms: when CCDs become equity

Each CCD will compulsorily convert into one fully paid-up equity share on a 1:1 basis. The conversion price is ₹400 per share, consisting of an equity share face value of ₹1 and a premium of ₹399. Conversion can be exercised by the CCD holder anytime after 12 months and before 18 months from the allotment date. If the investor does not exercise the option, conversion will occur automatically on the last day of the 18th month.

Interest payment schedule and share ranking

Interest on the CCDs is stated to be payable in three instalments after 180 days, 360 days, and for the remaining period up to conversion. The equity shares issued upon conversion will rank pari-passu with existing shares. This includes dividend and voting rights, as per the stated terms. The shares issued on conversion will also be subject to SEBI ICDR lock-in requirements.

Where the ₹150 crore will be used

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

Copper prices, working capital pressure, and capacity plan

The company has referenced increased working capital needs due to rising copper prices. The clarified allocation includes ₹90 crore towards working capital to support copper procurement and related liabilities. On the expansion side, the stated purpose includes capacity expansion from 55,000 MT/PA to 69,000 MT/PA by Q2 FY2027-28. The planned capex also covers new plant, machinery, and land acquisition, aligned with the expansion timeline provided in the utilisation plan.

Proposed allottees and promoter holding impact

The proposed preferential issue is to two non-promoter investors. The updated notice identifies AADI Financial Advisors LLP and Anchorage Capital Scheme III (Category II AIF) as proposed allottees. The Promoter and Promoter Group holding is expected to adjust from 56.62% pre-issue to 55.48% post-conversion of CCDs, as per the corrigendum.

Key dates investors should track

Along with the EGM date, Precision Wires India has shared the cut-off date and the remote e-voting window. These dates set the timeline for shareholder participation and decision-making on the preferential issue proposal.

Market snapshot and recent performance context

The data provided alongside the notice mentions a market cap of ₹8,635 crore and a current price of ₹473. The EGM follows a Q1 FY27 performance update where net profit rose 71.5% year-on-year to ₹46.45 crore. The capital-raising plan is positioned as funding for business expansion, capital expenditure, and working capital needs, including the company’s manufacturing modernisation initiatives referenced in the materials.

Why the clarified utilisation matters

The corrigendum adds specificity on how the ₹150 crore is intended to be deployed, separating working capital for copper-linked requirements from longer-horizon expansion spending. The timelines provided (18 months for working capital and 24 months for expansion) also set clearer expectations for deployment pace. For shareholders voting at the September 5 EGM, the updated disclosures tighten the link between the CCD proceeds, working capital needs, and the stated capacity expansion roadmap. The company has also disclosed that it has filed applications with stock exchanges for in-principle approval related to the proposed preferential issue.

What happens next

Shareholders will vote on the preferential CCD issue at the EGM scheduled on September 5, 2026. The proposal covers the issuance of 37.5 lakh 12% CCDs at ₹400 each, conversion into equity on a 1:1 basis, and the revised utilisation plan of ₹90 crore for working capital and ₹60 crore for expansion. Any further steps will follow the shareholder decision and the process outlined in the notice, including the conversion window between 12 and 18 months from allotment.