Manaksia Coated Metals & Industries Limited, a manufacturer and exporter of metal products, has announced plans to raise Rs 134.55 crore through a preferential warrant issue. During its December 2, 2024, board meeting, the company approved the issuance of 2,07,00,000 warrants priced at Rs 65 each. The funds will fuel the company’s ambitious capacity expansion and technology upgrade initiatives.

The capital raised will be utilised for a technology upgrade project that transitions the company to producing Alu-Zinc Coated Steel products. This will increase production capacity from 132,000 MTPA to 180,000 MTPA, boosting output by 36% and driving corresponding revenue growth. Additionally, the company plans a forward integration project, investing in a state-of-the-art steel coil coating line. This will expand Pre-Painted Steel capacity from 86,000 MTPA to 236,000 MTPA.

“The funds raised will enable us to significantly expand our production capacity, particularly in Alu-Zinc, which will allow us to cater to the growing demand in the market more efficiently. This expansion will also streamline our operations, improve profitability, and ensure that we continue to deliver high-quality products to our customers,” Karan Agrawal Whole Time Director, Manaksia Coated Metals & Industries Limited said.” 

A portion of the funds will also be allocated to optimiing the working capital cycle and developing a captive solar power plant in phases, underlining the company’s commitment to sustainable, energy-efficient practices.

These initiatives will enable the company to shift toward more value-added, premium products, enhancing profit margins while significantly expanding production capacity. With this strategic move, Manaksia aims to meet growing market demand more effectively while minimizing its carbon footprint.

“By streamlining our working capital cycle, we will improve liquidity and strengthen financial flexibility. The phased development of a captive solar power plant will not only support the sustainability goals but also help reduce long-term energy costs,” he added.