Man Infraconstruction Limited’s shares were up by 3.22 per cent after the Board granted approval for a fund-raising endeavour totaling approximately ₹550 crore. This initiative will involve the issuance of convertible equity warrants through a Preferential Issue. The fund infusion aims to raise capital through the issuance and allotment of up to 3,55,05,000 warrants, each convertible into 1 (one) Equity Share at an issue price of ₹155, including a premium of ₹153 per warrant.
Positioning this move as a priority, the company envisions leveraging these funds for growth opportunities within the real estate sector. The strategy includes acquiring new projects, expediting ongoing project completion, and overall business expansion. The decision aligns with the company’s perception of long-term capital requirements to achieve these objectives.
The company reported that the rationale behind this fundraise lies in the trajectory observed in the real estate sector, coupled with the company’s proven track record in project execution and a sturdy balance sheet. The proposed fund infusion through a preferential issue of convertible equity warrants is anticipated to fortify the company’s growth prospects.
The shares were up by 3.22 per cent to ₹203.55 at 10.32 am on the BSE.