ASM Technologies Announces ₹170.1 Crore Fundraise Plan

On March 20, 2024, ASM Technologies announced that the company plans to raise ₹170.1 crore through preferential allotment of equity shares and warrants. The company has already raised ₹70 crore out of the total planned fundraising of ₹170.1 crore. The remaining ₹100.1 crore will be received over the period of 18 months.

Details of the Fundraising

On Wednesday, the consulting and product development services provider, ASM Technologies, informed in an exchange filing about the preferential allotment of equity shares and warrants amounting to ₹1,701 million, of which ₹700 million was raised on March 20, 2024. The fundraising was led by stock market investor Mukul Agrawal, in which the promoters also took part.

The exchange filing by the company stated, “ASM Technologies Limited, today announced the preferential allotment of equity shares and warrants amounting to ₹1,701 million of which ₹700 million has been raised today and balance of ₹1,001 million will be received over the period of 18 months. The fundraise led by one of the leading and among the top stock market investors, Mr Mukul Agrawal, in which the promoters also participated, is part of a larger fundraise in pursuance of its strategic objectives to be a global leader in design-led manufacturing. With a rich legacy of over three decades, ASM is poised to utilise the proceeds of the issue to fuel organic and inorganic growth opportunities.”

The company further added that its strategic initiatives comprise funding for takeovers and acquisitions in the growing space of design-led manufacturing. Also, ASM Technologies intends to channel the raised capital towards addressing general corporate demands, investment in joint ventures, subsidiaries, associates, and other permitted objectives in accordance with applicable laws.

The Managing Director of ASM Technologies, Rabindra Srikantan, emphasised the transformative impact of the preferential issue on the company’s future prospects, remarking, “The forthcoming fundraising marks a pivotal moment for ASM Technologies Limited. With a clear focus on strategic growth, this infusion of capital not only bolsters our financial resilience but also underscores our commitment to innovation and market leadership. We view this as a strategic enabler to further enhance our capabilities, drive technological advancements, and solidify our presence in key global markets.”

In the same exchange filing, the company also added that the approval for the preferential issue of Equity Shares and Warrants was obtained in compliance with the regulations laid down by the Securities and Exchange Board of India (SEBI), and subsequent in-principle approval was granted by BSE Limited on March 18, 2024. The decision to allot 8,00,000 Equity Shares and 28,14,390 Warrants at an issue price of ₹470.70, including a premium of ₹460.70.

On Thursday, March 21, 2024, the share price of ASM Technologies Ltd opened at ₹975.00, touching the day’s high at ₹982.50, as of 10:51 AM on the BSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.