Ramkrishna Forgings has released a Monitoring Agency Report concerning the utilization of funds from a preferential issue of 975,000 warrants. The report, conducted by India Ratings & Research, indicates that INR 51.19 Crores, representing 25% of the warrant value, has been received and utilized for debt repayment. This announcement, dated January 27, 2026, provides transparency on the company’s financial actions.
Warrant Proceeds Utilization
As of December 31, 2025, Ramkrishna Forgings successfully issued 975,000 convertible warrants at a price of INR 2,100 per warrant, raising a total of INR 204.75 Crores. The company has received INR 525 per warrant, totaling INR 51.19 Crores, which constitutes 25% of the total warrant value.
Fund Allocation
The received funds have been strategically allocated towards debt repayment, enhancing the company’s financial stability. The remaining 75% of the warrant value (INR 1,575 per warrant) will be collected when warrant holders exercise their conversion option into equity shares within the 18-month warrant tenure.
Monitoring Agency’s Observations
India Ratings & Research Private Limited, the monitoring agency, confirms that there have been no deviations from the intended utilization of the funds. The agency’s report ensures stakeholders that the funds are being used as initially planned.
Planned Use of Proceeds
The proceeds from the warrant issuance are primarily designated for two key purposes:
- Debt Repayment: Allocating funds towards repaying working capital loans, including interest payments.
- General Corporate Purposes: Utilizing up to 25% of the issue proceeds to meet corporate exigencies and contingencies, ensuring smooth operations and strategic flexibility.
Source: BSE
