Walchandnagar capital raising plan to boost its share prices

Walchandnagar Industries has informed BSE that the Board in its meeting held on November 22, 2016 has accorded its consent for availing the financial facilities in the form of loan or Non-convertible debentures (NCD) up to Rs 235 crores which shall be used partly for repayment of existing loans and partly for long term working capital requirement of the company. The board also approved issue of Non-Convertible Debentures (NCD), on a private placement basis, up to Rs 150 crores out of financial facility of Rs 235 crores, subject to the approval of shareholders and balance would be as loan.

The shares of the company in the past six months have surged by two per cent. However, in the last three months the prices have fallen by nine per cent. Recently, Walchandnagar Industries has declared its Q2FY17 results which have largely been disappointing. Net sales in this quarter stand at Rs 98.32 crores which have fallen by 28 per cent YoY. The company has reported a net loss of Rs 14.06 crores.