The shares of Raghav Productivity Enhancers surged to a high of Rs 752.7 per share on Tuesday after a week-long rally. The reason behind the movement is a massive Rs 31 crore investment by Rakesh Jhunjhunwala.
According to a regulatory filing by the company, the ace investor is buying 6 lakh unsecured compulsory convertible debentures (CCDs) worth Rs 30.9 crore.
The CCDs were bought on a preferential allotment on a Private Placement basis and will be turned into equity shares after 18 months from the date of allotment. The company issued the CCDs at a price of Rs 515 per unit, carrying a simple interest rate of 15 per cent per annum.
"The board approved the conversion price of equity share at the higher of the following: i) Rs 515 per share including the premium of Rs 505 per share, ii) Price as determined as per Regulation 164(1) of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, Relevant date referred to in regulation 161(a) to be considered for the same," the filing added.
A smallcap metals and mining company, Raghav Productivity Enhancers is one of the country’s leading manufacturers of Ramming Mass. The company also engages in manufacturing and retailing silica ramming mass, quartz powder and the dealing of galvanized iron (GI) sheets. The company’s shares have gained over 2,400 percent in the last 5 years, with a gain of over 200 percent in just the previous year.
Jhunjhunwala has been bullish about the metals and heavy industry sector, having recently invested in the government-owned metal company, Steel Authority of India (SAIL) during the June quarter by buying a 1.39 percent stake.
(Edited by : Aditi Gautam)
First Published: IST