Precision Wires India raises Rs 150 crore through 12% CCDs

Precision Wires India Limited raised Rs 150 crore through 37.50 lakh 12% compulsorily convertible debentures allotted on September 25, 2026, which can convert into an equal number of equity shares after 12 months and must convert within 18 months. The company recorded the full Rs 150 crore as a financing cash inflow for the half year ended September 30, 2026.

What did Precision Wires India allot?

Precision Wires India allotted 37.50 lakh 12% compulsorily convertible debentures (CCDs) with a face value of Rs 400 each, fully paid up, aggregating to Rs 150 crore. The Board made the allotment on September 25, 2026, after shareholder approval on September 5, 2026 and receipt of in-principle approval from the stock exchanges.

The company disclosed the issue in its financial-results notes approved by the Board on November 6, 2026. The filing identifies the number of instruments, face value, 12% designation and conversion terms, but does not identify the investor or state the intended use of the Rs 150 crore proceeds.

Precision Wires India recorded Rs 150 crore as proceeds from issuing 12% CCDs in its unaudited cash-flow statement for the half year ended September 30, 2026. No CCD proceeds were reported for the year ended March 31, 2026, when the financing cash flow included Rs 62.67 crore from a preferential issue of equity shares.

The half-year financing inflow also included Rs 74.35 crore of net proceeds from term borrowings. Financial charges paid were Rs 47.36 crore and dividends paid were Rs 10.05 crore, leaving net cash generated from financing activities of Rs 166.94 crore.

When will Precision Wires India CCDs convert into shares?

Precision Wires India CCDs may be converted at the investor's option after the expiry of 12 months but before completion of 18 months from the September 25, 2026 allotment date. If the investor does not exercise that option during this period, the CCDs will compulsorily convert upon completion of 18 months from allotment.

The conversion ratio is one equity share for every CCD. Therefore, the 37.50 lakh CCDs can become 37.50 lakh equity shares, establishing a defined increase in the equity-share count once conversion occurs. The filing does not disclose a separate post-conversion share-capital amount or a dilution percentage.

Paid-up equity share capital stood at Rs 18.28 crore at both September 30, 2026 and March 31, 2026, with each equity share carrying a face value of Rs 1. The unchanged reported share capital at the September reporting date is consistent with the CCDs remaining unconverted at that point.

The company describes the instruments as compulsorily convertible, so they do not remain outstanding indefinitely under the disclosed terms. The investor has a conversion window after month 12, while compulsory conversion at month 18 applies if no election is made within that window.

How did the CCD issue affect Precision Wires India cash flow?

Precision Wires India ended September 30, 2026 with cash and cash equivalents of Rs 423.85 crore, compared with Rs 114.32 crore at April 1, 2026, an increase of Rs 309.53 crore. The Rs 150 crore CCD proceeds were the largest specifically identified financing inflow in the half-year cash-flow statement.

The increase in cash did not arise from the CCD issue alone. Net cash from operating activities was Rs 64.25 crore, net cash generated from investing activities was Rs 78.34 crore, and net cash from financing activities was Rs 166.94 crore for the half year ended September 30, 2026.

Investing cash flows included Rs 123.26 crore spent on fixed assets, including capital work in progress, Rs 222 crore used to purchase mutual funds and Rs 404.19 crore received from sales of mutual funds. Savings on account of the Export Promotion Capital Goods benefit contributed Rs 20.51 crore, while lease-liability payments were Rs 1.10 crore.

The cash-flow statement was prepared using the indirect method under Indian Accounting Standard 7, or Ind AS 7. Precision Wires India reported a net increase in cash equivalents of Rs 309.53 crore during the half year, compared with a Rs 75.57 crore increase in the year ended March 31, 2026.

What were Precision Wires India financial results and liabilities at September?

Precision Wires India reported total revenue of Rs 3,751.26 crore for the half year ended September 30, 2026, up from Rs 2,352.98 crore in the half year ended September 30, 2025. Profit for the period increased to Rs 89.84 crore from Rs 62.70 crore, while finance cost rose to Rs 47.66 crore from Rs 31.82 crore.

For the quarter ended September 30, 2026, total revenue was Rs 1,972.02 crore, against Rs 1,237.41 crore in the September 2025 quarter. Quarterly profit for the period was Rs 43.39 crore, compared with Rs 35.61 crore a year earlier, while profit before tax was Rs 59.56 crore versus Rs 48.43 crore.

Total assets were Rs 2,785.42 crore at September 30, 2026, compared with Rs 2,249.21 crore at March 31, 2026. Equity rose to Rs 977.13 crore from Rs 772.34 crore, while non-current liabilities increased to Rs 259.25 crore from Rs 182.92 crore over the same period.

Current liabilities were Rs 1,549.03 crore at September 30, 2026, up from Rs 1,293.95 crore at March 31, 2026. Current borrowings rose to Rs 176.69 crore from Rs 131.12 crore, and non-current borrowings increased to Rs 191.11 crore from Rs 162.33 crore; the displayed balance sheet does not separately identify a CCD balance within its liability headings.

Precision Wires India reported one primary business segment under Indian Accounting Standard 108: manufacturing of winding wires. The statutory auditors conducted a limited review of the September 2026 quarterly and year-to-date standalone results, rather than an audit, under the Securities and Exchange Board of India listing regulations.

Conclusion

Precision Wires India has added Rs 150 crore through 37.50 lakh 12% CCDs, with each instrument convertible into one equity share. The cash-flow statement shows the proceeds as a major financing inflow during the half year ended September 30, 2026, alongside higher revenue, profit, borrowings and cash balances than in the comparison periods disclosed.

The next disclosed milestone is the investor's conversion window after 12 months from the September 25, 2026 allotment, followed by compulsory conversion at 18 months if no option is exercised. Investors can watch for company disclosures on conversion, the resulting share capital and any further details on the investor or use of proceeds, which this filing does not provide.