Ashish Kacholia and Promoter Birla Receive Shares and Warrants at a Premium in This Railway Stock!
Ace investor Ashish Kacholia was allotted 3,09,800 shares in the preferential allotment of this railway stock
The Indian equity benchmark indices staged a smart recovery from lower levels, with the Nifty 50 closing in positive territory. The index ended the session up by 0.17 per cent, nearing the 22,500 mark. Throughout the day, the Nifty 50 recovered over 170 points from its intraday lows as volatility eased at higher levels.
The broader markets experienced a mixed session. The Nifty Midcap 100 index managed to close with gains of 0.67 per cent, whereas the Nifty Small-Cap 100 index declined by 0.80 per cent. Stock-specific action remained prominent on Dalal Street, with several stocks attracting investor interest.
Among these, Cosmic CRF stood out as a stock that gained significant attention. The company's stock surged by over 2.6 per cent on March 11, 2025. Cosmic CRF Limited (CCRFL) was incorporated in December 2021 and later acquired a running Cold Rolled Forming (CRF) unit in Singur, Hooghly district, West Bengal, from Cosmic Ferro Alloys Limited through a Business Transfer Agreement dated January 19, 2022.
CCRFL specializes in manufacturing cold-rolled forming sheet products, primarily used in railway wagons. The company’s product portfolio includes flap doors and center seals, with key customers such as Titagarh Wagons, Hindustan Engineering & Industries Limited, and Texmaco Rail & Engineering Limited. Additionally, the company produces sheet piles, which are widely used in infrastructure projects.
In a significant development, Cosmic CRF announced that its board of directors had approved a fundraising plan via preferential allotment.
A preferential allotment is a method by which a company issues shares or warrants to a select group of investors rather than offering them to the public. This approach helps the company raise capital from strategic investors. Unlike IPOs or rights issues, where shares are available to all investors, preferential allotments target specific individuals or institutions, often at a predetermined price.
In this case, Cosmic CRF raised substantial capital by allotting shares and warrants to prominent investors.
Cosmic CRF issued 9,89,643 equity shares at a price of Rs 1,614 per share. This price includes a face value of Rs 10 and a premium of Rs 1,604 per share. The company successfully raised approximately Rs 159.73 crore from this share issuance.
The equity shares were allotted to well-known investors, including Ashish Kacholia, RBA Finance & Investment, Alchemy Capital & Fund, Hansa Hasmukh Shah, and other investors. Among them, Ashish Kacholia received an allotment of 3,09,800 shares.
In addition to equity shares, the company also issued 3,15,000 warrants. Each warrant grants the holder the right to purchase one equity share at Rs 1,614 per share in the future. The total potential capital that can be raised from these warrants amounts to Rs 50.84 crore.
Investors paid 25 per cent of the total amount upfront, contributing Rs 12.71 crore. The remaining 75 per cent can be paid within 18 months when investors choose to convert the warrants into shares. These warrants were primarily allotted to the Aditya Vikram Birla and other promoters.
Disclaimer: The article is for informational purposes only and not investment advice.