Mahindra Forgings had some phenomenal gains and in the last four trading sessions it's up almost 70%. CNBC-TV18's Sonia Shenoy reports. The company has got an approval for raising funds to the tune of about Rs 226 crore. It was announced on October 28 and this was to be done via a rights issue.
However, according to sources, there have been a lot of closed-door meetings with the management where the management is contemplating raising funds via the QIP route.
Below is a verbatim transcript of her comments on CNBC-TV18. Also watch the accompanying video. They have got an approval for raising funds to the tune of about Rs 226 crore. It was announced on October 28 and this was to be done via a rights issue. However, now we are hearing from sources that there have been lot of closed-door meetings with the management where the management is contemplating raising funds via the QIP route because they feel that the time is ripe at this point in time to rake in funds from the market via the QIP route. Some sort of an announcement may be expected in the next four-five days as reported by sources. The promoter stake is currently at 61% and they are expecting dilution to come down to possibly 55%, if in case they do go in for a QIP. They do have approval right now for a rights issue and will of course go in for that. They have seen a turnaround this time in their Q2 performance, there was an analyst meet that was with the management 10 days ago where they indicated a lot of improvement in the sector in the company particularly. They have seen a turnaround this time. Their PAT has come down Rs 32 lakh and this is versus a net loss of Rs 7 crore that they made last quarter. So they are expecting a volume growth of 15-20% going forward as well.
