Sprayking Agro Equipment Board Approves Fund Raise To Issue Warrants On Preferential Basis To FIIs

Sprayking Agro Equipment Limited, a leading manufacturer in the agricultural industry, has informed that the Board of the Company has approved raising of funds through convertible warrants on a preferential basis, subject to relevant regulatory approvals.
The board has inter-alia considered and successfully approved the raising of fund through the Issuance of a total of 8,40,000 Convertible Warrants on a Preferential Basis at a price of Rs. 207 per warrant to foreign investors namely Nexpact Limited and AG Dynamic Fund Limited. The current market price is Rs. 190. The company has charged a premium of 9% to new investors.

The Company has received interest from multiple investors including but not limited to HNIs, Domestic as well as foreign investors, after discussion the company has decided to give a stake to foreign investors who can bring value in the Company and motivate the vision of the Company. The funds raised will play a pivotal role in advancing our mission to become one of the leading manufacturers of brass components and parts, including fittings, forging equipment, transformer parts, and other customized brass components.

The Company has recently acquired its new manufacturing facility at Jamnagar, Gujarat. The unit will be manufacturing brass and forging components/parts similar to the existing manufacturing facility of the Company. This new Manufacturing facility is spread over 3,000 sq. mtr. The addition of this manufacturing facility will strengthen the company's presence in the market.

Sprayking Agro Equipment Limited has recently acquired a 51% stake in M/s. Narmada Brass Industries in order to expand the business. Established in 2019, Narmada BrassIndustries is a partnership firm started by Mr. Hitesh Dudhagra. Narmada Brass has its own manufacturing unit of copper brass products. The manufacturing plant has a capacity of 2000 tons per annum of forged products. With this acquisition, the Company is growing by leaps and bounds and catering to new demand of orders from domestic as well as export markets.

The company is growing in organic and inorganic ways to achieve the vision and mission of the company. The fund which is being raised shall be used for the growth of the company and in turn growth of the stakeholders.

Established in 2005, Sprayking Agro Equipment Limited is engaged in the manufacturing of brass components and parts, including fittings, forging equipment, transformer parts, and other customized brass components. Sprayking is a renowned manufacturer specializing in copper forging products. With a commitment to quality craftsmanship and exceptional design, Sprayking aims to provide customers with a diverse range of functional and decorative copper products. Sprayking is in the business of manufacturing and trading agricultural sprayer parts & garden fittings, extruded brass rods, brass fittings & lead-free brass fittings and forging specialty.

The Company has a truly global presence with an unparalleled clientele in USA, Europe, Australia, Canada, South Africa, UAE & India. The high-quality Products, Technical knowledge & infrastructure enable the company to encompass global markets.

Sprayking, a leading forging company renowned for its commitment to innovation and excellence, has a state-of-the-art Research and Development (R&D) facility. This cutting-edge facility represents a belief or Company in advancing forging technologies and processes, further solidifying Sprayking's position as an industry leader in its region.

Management Comment:

Commenting on this development, Mr. Hitesh Dudhagara, Managing Director of Sprayking said:

We are immensely grateful for the incredible outpouring of support we received from multiple investors. These funds will be used for working capital and in other strategic investments to grow the business in an organic and inorganic way and that will enable us to expand our business and that will enable us to expand our business to the next level.

On Friday, the shares of Sprayking Agro Equipment opened on the BSE at Rs 197.35 apiece and clocked to Rs 194.85 +2.45 (+1.27%) over the previous close of Rs 192.40. The stock made a 52-week-high of Rs 209.95 on (10/08/2023) and a 52-week-low of Rs 13.56 on (08/09/2022). In the last 1 year, the stock has generated a whopping multibagger return of 1,336.95% and on a YTD basis, the scrip has generated a multibagger return of 676.91% so far in 2023.