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Kingfa Science & Technology Powers Up with Rs 500 Crore Institutional Capital Boost Ahead of EGM

Swarnadwip Nath Published Aug 22, 2025, 09:45 PM Updated Sep 16, 2026, 11:24 AM

Kingfa Science & Technology (India) Limited has unveiled its plan to raise nearly Rs 500 crore through a preferential issue of equity shares to reputed non-promoter investors, including several SBI Mutual Fund schemes and foreign investors. The board approved the proposal to issue up to 14,40,920 fully paid equity shares priced at Rs 3,470 per share (including a premium of Rs 3,460 per share). The move aims to strengthen the company’s capital base and fund strategic growth initiatives, subject to shareholder approval at the upcoming Extraordinary General Meeting (EGM) scheduled for September 17, 2025.

Key Highlights of the Preferential Issue:

Total shares to be issued: Up to 14,40,920 fully paid equity shares of Rs 10 face value each.
Issue price: Rs 3,470 per share, including Rs 3,460 premium.
Aggregate amount to be raised: Up to Rs 499.99 crore.
Allotment basis: Preferential issue to notable non-promoter entities, including SBI Flexicap Fund, SBI Automotive Opportunities Fund, SBI Conservative Hybrid Fund, Custody Bank of Japan Ltd (Amundi India Small Cap Equity Fund), SBI Optimal Equity Fund, SBI Emergent India Fund, and Sanshi Fund I.
Shareholding impact: The issue adds substantial new investment from diversified mutual funds and alternative investment funds, enhancing the company’s financial flexibility.
Regulatory compliance: Issuance pursuant to SEBI ICDR Regulations, subject to shareholder and regulatory approvals.

Corporate Governance and Meeting Updates:

Kingfa Science & Technology will convene an EGM on Wednesday, September 17, 2025, specifically to approve the preferential issue.
The 41st Annual General Meeting (AGM) is scheduled for Monday, September 29, 2025, to be held virtually in compliance with regulatory guidelines.
The company has closed its trading window as per insider trading regulations, reopening 48 hours after the EGM outcome is declared.

Strategic Significance:

This substantial capital raise through preferential allotment to institutional investors signals Kingfa Science & Technology’s intent to accelerate growth and innovation in its core business domains, which include reinforced polypropylene compounds and personal protective equipment segments. The fresh funds will potentially be used for expansion, debt management, or enhancing production capabilities.

Investors and market participants should monitor upcoming disclosures closely for detailed use of proceeds and the final allotment outcome following the EGM.

Source: Company Disclosure to the Stock Exchanges

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