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PNN
Mumbai (Maharashtra) [India], December 3: Manaksia Coated Metals & Industries Limited (NSE: MANAKCOAT, BSE: 539046), A leading manufacturer and exporter of high-quality coated metal products, has announced the approval of a preferential warrant issue to raise Rs134.55 crore. The board of directors approved the issuance of 2,07,00,000 warrants at Rs65 per warrant during its meeting on December 02, 2024. This move will support the company's ambitious plans for capacity expansion and a major technology upgrade. The funds raised will be utilised to undertake a technology upgrade project whereby the company will transition to production capability for Alu-Zinc Costed Steel products. The production capacity will be enhanced from 132,000 MTPA to 180,000 MTPA, enabling a 36% increase in output and corresponding revenue. The CAPEX being planned by the company also includes a forward integration project whereby the company would be investing in a new and state-of-the-art steel coil coating line, which would catapult the capacity of Pre-painted Steel from 86,000MTPA to 236,000MTPA. Additionally, a portion will be allocated to optimise the working capital cycle and establish a captive solar power plant in a phased manner, reflecting the company's commitment to sustainable and energy-efficient practices. This strategic move will benefit the company by moving to a more value-added and premium product, enabling higher margins along with significant growth in production capacity. With the expanded capacity and focus on energy efficiency, the company aims to better meet increasing market demand while reducing its carbon footprint. Commenting on this achievement, Karan Agrawal, Whole Time Director, Manaksia Coated Metals & Industries Limited, said, " We are pleased to announce the approval of the preferential equity warrant issue, which will play a pivotal role in driving our growth and operational improvements. The funds raised will enable us to significantly expand our production capacity, particularly in Alu-Zinc, which will allow us to cater to the growing demand in the market more efficiently. This expansion will also streamline our operations, improve profitability, and ensure that we continue to deliver high-quality products to our customers. By streamlining our working capital cycle, we will improve liquidity and strengthen financial flexibility. The phased development of a captive solar power plant will not only support the sustainability goals but also help reduce long-term energy costs. Combined with the increased production capacity, these initiatives will enhance the market position, drive greater operational efficiency, and ensure competitiveness, all while contributing positively to the environment." (ADVERTORIAL DISCLAIMER: The above press release has been provided by PNN. ANI will not be responsible in any way for the content of the same)
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