Manaksia Coated Metals announces Rs 134.55cr equity warrants for capacity upgrade

Manaksia Coated Metals & Industries Limited, a renowned manufacturer of high-quality coated metals, has announced the approval of a preferential equity warrant issue worth ₹134.55 crore. The company’s board revealed this initiative on 2 December 2024, aiming to fund critical projects, including production capacity expansion and the adoption of sustainable energy practices.

By issuing 207,000 warrants at ₹65 each, Manaksia Coated Metals is setting the stage for enhanced capabilities in manufacturing Alu-Zinc coated steel and expanding pre-painted steel production. This strategic investment highlights the company’s commitment to meeting increasing market demand growth while driving operational improvements and profitability.

Strategic investment for capacity expansion

The funds raised through the equity warrant issue will be channelled into a series of transformative initiatives. Among them is a major shift to manufacturing Alu-Zinc coated steel, a premium product offering significant profit margins. This project is expected to boost production capacity expansion by 36%, increasing output from 132,000 metric tonnes per annum (MTPA) to 180,000 MTPA.

Additionally, the company plans to revolutionise its pre-painted steel production capacity, jumping from 86,000 MTPA to 236,000 MTPA. This leap will be supported by the installation of a new, state-of-the-art steel coil coating line. A portion of the funds will also be used to streamline working capital cycles and embark on a phased solar power investment to support sustainable energy practices.

Karan Agrawal, Whole Time Director of Manaksia Coated Metals, highlighted the significance of these initiatives, noting that the equity warrant issue will drive growth, strengthen liquidity, and facilitate a robust move towards energy-efficient production methods.

Innovation and sustainability at the core

This forward-thinking investment reflects Manaksia Coated Metals’ dedication to both innovation and sustainable energy practices. A planned solar power investment will not only reduce long-term energy costs but also align with the company’s broader environmental goals. By transitioning to premium products like Alu-Zinc coated steel, Manaksia is poised to deliver higher-value offerings while maintaining its leadership in high-quality coated metals.

Operating from a strategically located facility in Gujarat, the company benefits from proximity to key ports, enabling seamless domestic and international logistics. With two manufacturing units and extensive service centres, Manaksia Coated Metals remains a trusted supplier to industries like construction, automotive, and engineering.

Financial performance and outlook

In the first half of FY25, Manaksia Coated Metals reported standalone revenue of ₹372 crore, an EBITDA of ₹29 crore, and a net profit of ₹5 crore. The funds generated through the equity warrant issue are expected to significantly bolster these figures by supporting the company’s ambitious production capacity expansion plans and enhancing its ability to meet market demand growth.

Through these initiatives, Manaksia Coated Metals is not only reinforcing its operational efficiencies but also solidifying its commitment to sustainable energy practices and innovation. The combination of expanded production, streamlined operations, and a focus on renewable energy sources positions the company for long-term competitiveness and environmental leadership.