The company plans to raise funds through the issuance of convertible equity warrants via preferential issue, subject to the necessary statutory and regulatory approvals. The approval process includes seeking the nod from the shareholders of the company, wherever required, said the firm.
The said fund will be raised through issue and allotment of up to 3,55,05,000 warrants, being each warrant convertible into one equity share of the face value of Rs 2 each on preferential basis at an issue price of Rs 155 including premium of Rs 153 per warrant.
“The company sees significant opportunities for future growth in the real estate sector and views it as a strategic priority to expand its real estate business by acquiring new projects, expediting the completion of ongoing projects, and enhancing its overall presence. To achieve these objectives, the company believes it requires long-term capital resources,” Man Infraconstruction stated in the press release.
Further, the firm added that the decision to raise funds is attributed to the current positive trend in the real estate sector, coupled with the company's established track record in project execution and a strong balance sheet. The fund infusion, as proposed through the preferential issue of convertible equity warrants, is expected to support and drive robust growth in the company's business in the future.
Manan Shah, managing director, Man Infraconstruction, said, " We see tremendous growth potential in the Indian real estate sector and are eager to capitalize on opportunities in the booming economy."
Man Infraconstruction has two business verticals viz., construction and real estate development. Maninfra is an integrated EPC (engineering, procurement and construction) company with nearly six decades of experience and execution capabilities in port, residential, commercial & industrial and road construction segments with projects spanning across India.
The company’s consolidated net profit jumped 30.7% to Rs 69.65 crore in Q2 FY23 as against Rs 53.28 crore in Q2 FY23. Net sales tumbled 46.3% year on year to Rs Rs 215.29 crore during the quarter.
Shares of Man Infraconstruction fell 0.87% to Rs 187.80 on the BSE.
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