Madhusudan Kela-Backed Firm Acquires Stake in SME Yash Highvoltage Through Preferential Issue.
Shares of Yash Highvoltage have demonstrated notable momentum, surging by 12.4% to reach a high of Rs 940 on the BSE, bolstered by a strategic acquisition of nearly 14,000 shares by Madhusudan Kela’s firm, Anantroop Financial Advisory Services. This acquisition, valued at approximately Rs 1 crore, signals robust investor confidence in the company’s potential. The company, recognized as a leading manufacturer in the power sector, has recently announced a preferential issue aimed at raising around Rs 151 crore, which is subject to approval by shareholders and regulatory entities.
The proposed issuance encompasses up to 12.62 lakh equity shares and 8.32 lakh convertible warrants at an issue price of Rs 721 each, with the total fundraising poised to facilitate substantial capital infusion into Yash Highvoltage’s growth initiatives. This positive momentum is reflected in the company’s stock performance, which has appreciated by 103% over the past six months and an impressive 110% year-to-date. The involvement of several institutional investors, including Value Quest India GIFT Fund and WhiteOak Capital, further underscores the company’s appealing investment profile.
Proceeds from the capital raise are earmarked for critical advancements in manufacturing and testing infrastructure. A principal objective is to expand the Resin-Impregnated Paper (RIP) bushing manufacturing capacity from the 245 kV range to 550 kV, propelling Yash into the extra-high-voltage transmission segment. This strategic expansion is expected to significantly enhance Yash Highvoltage’s market reach and bolster its position within the power equipment industry. Additionally, the company plans to upgrade its Oil-Impregnated Paper (OIP) bushing manufacturing facility to accommodate growing demand, thereby expanding its product offerings and technological capabilities.
The intentions of Yash Highvoltage to invest in high-voltage testing facilities and enhance product development capabilities highlight its commitment to meeting international standards and tapping into both domestic and global markets. As articulated by Managing Director Keyur Shah, the proposed fundraising represents a pivotal step forward in the company’s growth trajectory, harnessing investor confidence to capitalize on emerging opportunities within the dynamic power generation and transmission landscape.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)