ASM Technologies Limited announces Rs. 1701 Million equity fund raise

ASM Technologies Limited, a pioneer in design- led manufacturing in semiconductor and automotive industries, today announced preferential allotment of equity shares and warrants amounting to Rs. 1701 Million of which Rs.700 Million has been raised today and balance of Rs. 1001 Million will be received over the period of 18 months. The fund raise led by one of the leading and among top, stock market investor Mr. Mukul Agrawal in which the promoters also participated, is part of a larger fund raise 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 utilize the proceeds of the issue to fuel organic and inorganic growth opportunities.

The company's strategic initiatives include funding for takeovers, acquisitions in increasing space of design- led manufacturing. Additionally, ASM plans to channel the raised capital towards addressing general corporate exigencies, investment in subsidiaries, joint ventures, associates, and other permissible purposes in accordance with applicable laws.

Talking about the announcements, Rabindra Srikantan, Managing Director of ASM Technologies Limited, emphasized the transformative impact of the preferential issue on the company's future prospects, remarking, "The forthcoming fund raise 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. This initiative aligns seamlessly with our overarching vision to deliver unparalleled value to our stakeholders and propel ASM to new heights of success."

ASM Technologies Limited aims to leverage the funds to enhance both scale and competence, setting the stage for accelerated growth over the next three years.

Furthermore, 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 ("BSE") on 18th March 2024. The decision to allot 8,00,000 (Eight Lakhs) Equity Shares and 28,14,390 (Twenty Eight Lakhs Fourteen thousand Three Hundred and Ninety) Warrants at a issue price of Rs. 470.70/- (Rupees Four Hundred Seventy and Seventy paisa only) including a premium of Rs. 460.70/- (Rupees Four Hundred Sixty and Seventy paisa only) underscores the company's commitment to enhancing shareholder value and capitalizing on growth opportunities. This strategic move, was approved at the Extraordinary General Meeting held on Friday, 08th March, 2024 by the shareholders, reaffirms ASM Technologies Limited's proactive stance in navigating the evolving market landscape and solidifies itsposition as a key player in the industry.

Shares of ASM TECHNOLOGIES LTD. was last trading in BSE at Rs. 935.75 as compared to the previous close of Rs. 939.80. The total number of shares traded during the day was 3608 in over 367 trades.

The stock hit an intraday high of Rs. 955.90 and intraday low of 931.10. The net turnover during the day was Rs. 3387968.00.

Source : Equity Bulls

Keywords

ASMTECHNOLOGIES INE867C01010 FundRaising PreferentialIssue