Mukul Agarwal & Motilal Oswal Participate In Rs 217 Crore Fund Raise For This Small Cap Forging Stock; Shares Jump Over 8%

Indian equity markets ended lower on Monday, with the benchmark Nifty 50 index declining 1.49 per cent to close at 23,815.85. Despite weakness in the broader market, stock-specific buying interest remained visible in select Small-Cap industrial and forging counters. In this segment, AMIC Forging remained in focus after the company announced a preferential fund raise involving marquee investors. On Monday, AMIC Forging share price surged 8.23 per cent to end at Rs 1,759.10.

AMIC Forging Approves Preferential Issue

AMIC Forging informed exchanges that the Board of Directors approved issuance of up to 14,22,900 convertible warrants on a preferential basis at an issue price of Rs 1,525 per warrant, aggregating up to Rs 216.99 crore.

Each warrant is convertible into one equity share within a period of 18 months from the date of allotment. The company stated that warrant holders will pay 25 per cent upfront at the time of allotment, while the remaining 75 per cent will be payable upon conversion.

The proposed investors in the preferential issue include Motilal Oswal Financial Services Limited, Mukul Mahavir Agarwal, Calliope Capital Advisors LLP, Infiniterise Venture, Rakesh Tarway, Mahesh Shah, Suresh Zunzunwala and other investors.

The Board also approved issuance of 26,200 equity shares at Rs 1,525 per share to Kvasa Capital aggregating Rs 3.99 crore on a preferential basis.

Other Key Developments

The company approved an increase in authorised share capital from Rs 12 crore to Rs 15 crore through creation of additional equity shares, subject to shareholder approval.

AMIC Forging also informed that Anand Rathi Advisors Limited has been appointed as the sole adviser for the proposed preferential issue.

The company has convened an Extraordinary General Meeting on June 5, 2026, to seek shareholder approval for the proposed fund raise and related resolutions.

About AMIC Forging

AMIC Forging is engaged in the manufacturing of forged and machined components catering to sectors including Railways, Defence, agriculture, Construction equipment and industrial machinery. The company supplies precision-engineered products for domestic as well as export markets.

The company operates manufacturing facilities in West Bengal and focuses on heavy engineering and forged component solutions across multiple industrial applications.

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Disclaimer: This article is for informational purposes only and not investment advice.