Prime Industries Limited has announced its intention to raise funds through a preferential issue of up to 27,30,000 equity shares, aiming to raise approximately ₹114.6 crore. The funds will be utilized for research and development activities, including strategic partnerships and in-house capabilities for indigenous precision-engineered components, as well as for general corporate purposes. The issue price is set at ₹42 per share. Shareholder approval is being sought for this preferential allotment.
Preferential Share Issue Planned
Prime Industries Limited is seeking shareholder approval for a preferential issue of up to 27,30,000 equity shares. This move is intended to raise approximately ₹114.6 crore (Rupees Eleven Crores Forty Six Lakhs Sixty Thousand Only) to augment the company’s financial resources and strengthen its capital base.
Fund Utilization
The proceeds from this preferential issue are earmarked for two primary purposes: funding research and development activities, including strategic partnerships and the development of in-house capabilities for indigenous precision-engineered components, particularly for the Nuclear and Defence industries. Additionally, a portion will be allocated towards meeting funding requirements for new product development, capacity expansion, diversification into allied engineering segments, and general corporate purposes.
Issue Details
The equity shares will be issued at a price of ₹42 per share, which includes a premium of ₹37 per share over the face value of ₹5 per share. This pricing is determined in accordance with SEBI ICDR Regulations. The preferential issue is proposed to be made to non-promoter categories, specifically to Mr. Uday Narang (24,92,500 shares) and Mr. Kushal Muchhal (2,37,500 shares).
Shareholder Approval Required
The company is convening its 34th Annual General Meeting on Monday, October 19, 2026, to discuss and approve this preferential issue. The decision requires shareholder approval via a special resolution.
Source: BSE
