Himadri Speciality Chemical announces strategic allotment of warrants to fuel growth

Himadri Speciality Chemical Limited (Himadri), a leading global specialty chemical conglomerate, has announced a significant financial move in its latest board meeting by approving the allotment of warrants on a preferential basis through a private placement. This strategic decision is aimed at bolstering the company’s financial foundation, enabling it to aggressively pursue its growth trajectory with a keen focus on new greenfield projects and the expansion of existing units.

The company plans to channel the proceeds from this issue primarily towards growth capital for its newly announced and upcoming projects. These projects include the capital expenditure for Cathode Active Material (CAM) manufacturing, the turnaround initiatives for Birla Tyres, and other capital investments in brownfield expansion and existing projects.

Himadri has made a decisive move to issue a total of 1,08,47,000 warrants, priced at Rs 316 per warrant, accumulating to an aggregate consideration of Rs 342.77 crores. This move is expected to significantly enhance the company’s financial leverage, providing it with the necessary capital to undertake its ambitious expansion plans.

The allocation breakdown includes 1,00,00,000 warrants to the Promoters and 8,47,000 warrants to non-promoter investors, indicating a robust vote of confidence from the company’s leadership and vested investors in its strategic direction and future prospects. Upon the conversion and exercise of these warrants into equity shares, the Promoter group’s equity in the company will see an increment by 0.82% on a fully diluted basis.

The preferential allotment of warrants signifies a pivotal moment for Himadri, reflecting its commitment to driving growth and delivering value to its stakeholders. By securing this crucial financing, Himadri is well-positioned to leverage its industry expertise and innovate within the specialty chemicals sector, underscoring its dedication to sustainable and responsible manufacturing practices.

This financial maneuver is also a testament to the confidence placed by the Promoters and other investors in the strategic vision and operational capabilities of Himadri. With this infusion of growth capital, Himadri is poised to enhance its production capabilities, contributing significantly to the Indian chemical sector’s advancement and aiming to elevate its position in the global chemical industry landscape.