ASM Technologies Ltd

ASM Technologies Ltd – Trading window closed from 1 October 2026 till 48 hours after the declaration of financial results for the quarter and period ended 30 September 2026

Preferential issue details

• Item 1 seeks approval for issue of equity shares on a preferential basis to QIBs and Non-QIBs.
• Total proposed issue size up to Rs 525,99,98,250 for 10,78,974 shares.
• Objects include funding organic growth, inorganic acquisitions, debt repayment, and working capital.
• Net proceeds allocated: Rs 394,49,98,688 to objects, Rs 131,49,99,562 to GCP.
• Notes allow +/-10% changes among objects; GCP cap not exceeding 25%.
• Utilization timeline extends to March 2031-2032, depending on fund deployment.
• Interim deployment permitted in money market instruments and bank deposits.
• No explicit voting outcome provided in corrigendum.

Resolutions

• Item 1: Special resolution to issue up to 10,78,974 equity shares.
• Issue price Rs 4,875 per share; floor Rs 4,864.20.
• Proposed allottees: SBI MF schemes, SBI Emergent India Fund, Derive, Asha Agrawal.
• Total proceeds up to Rs 525.99 crore.
• Redemption rights: pari-passu; listing on BSE/NSE; lock-in as applicable.
• 15-day timeframe for allotment; approvals from regulators.
• No promoter/director participation; allocations to non-promoters.
• Board authorized to finalize documents and issue invitations.

Independent director appointment

• Item 2: Amrita Verma Chowdhury appointed as Non-Executive Independent Woman Director.
• Five-year term from Aug 31, 2026 to Aug 30, 2031.
• Remuneration up to 2% of net profits for non-executive directors.
• Office not liable to retire by rotation; appointment subject to shareholder approval.

Capital-raise mechanics

• Floor price Rs 4,864.20; offer price Rs 4,875; higher of price parameters.
• Total issue size 10,78,974 shares for Rs 525.99 crore.
• Allottees include QIBs and Non-QIBs; categories non-promoter.
• Valuation report and independent valuer engaged; floor price recomputation possible.
• Monitoring by CARE Ratings; listing via BSE; private placement via PAS-4 letters.

Shareholding impact

• Post-issue promoter holding 53.55%; non-promoters 46.45%.
• Total post-issue shares 1,56,67,572.
• Promoter total shares may be 83,90,011; percentage declines.
• Derive ownership shows ultimate beneficiaries include Damani family.

Use of proceeds

• Net proceeds up to Rs 525.99 crore to be allocated per board decisions.
• Category i: organic capex; ii: acquisitions; iii: debt repayment; iv: working capital.
• Discretion to reallocate funds among uses.

Governance & disclosures

• No willful default or fugitive offender status.
• Proposed allottees include QIBs and Non-QIBs; 5% post-issue threshold; valuation required.
• Post-issue listing: equity shares listed on BSE; pari-passu.
• Ultimate beneficial owners for Derive include Damani family.

Management impact

• No change in management due to preferential issue.

Preferential issue overview

• Purpose: fund raise via preferential issue of equity shares.
• Securities: 10,78,974 equity shares.
• Issue price: Rs 4,875 per share; cash consideration.
• Aggregate amount: Rs 525.99 crore.
• Proposed allottees: four non-promoter investors.
• SBI Mutual Fund post-issue holding: 5.25%.
• SBI Emergent India Fund post-issue holding: 0.65%.
• Derive Trading and Resorts Private Limited post-issue: 0.65%.
• Asha Mukul Agrawal post-issue: 0.33%.
• Approval: EGM on Oct 4, 2026 for shareholder approval.
• Floor price date: Sept 4, 2026.
• Instrument type: equity shares; no convertibles.
• Nature of consideration: cash.
• Status: issue subject to shareholder approval.

Meeting Details

• Board meeting scheduled for 9 September 2026.

Key Agenda Items

• Proposal for issuance of equity shares or warrants by way of a preferential allotment.
• Subject to regulatory approvals, convene an extraordinary general meeting for the fund raising.

Other Notes

• Trading window closed for designated persons and their immediate relatives from 6 Sept 2026; reopens after 48 hours.

Appointment details

• Appointment of Amrita Verma Chowdhury as Additional Director (Non-Executive, Independent).
• Term: Aug 31, 2026 to Aug 30, 2031, subject to shareholder approval.
• Approval via circular resolution dated Aug 31, 2026.
• Profile: tech entrepreneur and independent director with governance across sectors.
• Not related to any Director; not debarred by SEBI or authorities.

Issue overview

• Type of issue: preferential issue; securities: equity shares and convertible warrants.
• Proceeds status: proceeds raised in full; GCP allocation revised after receipt.
• Objectives: funding organic and inorganic growth and strategic acquisitions; general corporate purposes.

Utilisation of proceeds

• Utilisation aligns with offer disclosures; no deviations observed.
• Funding growth and acquisitions: partially utilised; remaining unutilised.
• General corporate purposes: partially utilised; funds idle.
• Unutilised proceeds invested in fixed deposits and mutual funds; no encumbrances.
• No major delays or changes in allocation reported.

Governance and compliance

• Approvals: statutory approvals not expressly required; board approved GCP allocation.
• Material events: no adverse events affecting viability reported.
• Disclosure: monitoring agency relied on management information and certificates.

GCP overview

• GCP allocation exists; board approved for allocation.
• GCP is partially utilised; remaining funds to be deployed in due course.
• GCP earmark revised upward after full proceeds receipt.

Business Overview

• End-to-end ER&D and design-led manufacturing with 7 plants in India and Vietnam.
• Markets served include USA, Singapore, UK, Canada, Japan, Thailand, Mexico, Vietnam.
• 7 manufacturing facilities: 3 Bangalore, 3 Chennai, 1 Vietnam.
• Strategic investments: Myelin Foundry ₹48 Cr for 20% holding.
• Strategic investments: Asmaitha Wireless ₹80 Cr for 51% holding.
• MoU with Karnataka government to invest ₹510 Cr for ESDM expansion.
• 10-acre land purchase from KIADB to set up new facility.
• Two new facilities at Dabaspet and Sriperumbudur to expand capabilities.
• 9 development centres, 7 manufacturing facilities, 10 offices.

Operational Highlights

• Q1 FY27 revenue from operations ₹198.8 Cr; EBITDA ₹46.2 Cr; EBITDA margin 23.2%.
• Profit After Tax ₹26.8 Cr; PAT margin 13.5%.
• FY26 revenue ₹528.5 Cr; EBITDA ₹101.1 Cr; EBITDA margin 19.1%.
• EPS Q1 FY27 ₹18.39; FY26 EPS ₹41.65.
• footprint: 3 Bangalore, 3 Chennai, 1 Vietnam manufacturing sites.
• 9 development centres, 7 manufacturing facilities, 10 offices.

Financial Performance

• Revenue growth: Q1 FY27 up 62% YoY to ₹198.8 Cr.
• EBITDA ₹46.2 Cr; margin 23.2%.
• PAT ₹26.8 Cr; margin 13.5%.
• FY26 Revenue ₹528.5 Cr; EBITDA ₹101.1 Cr; EBITDA margin 19.1%.
• FY26 Profit After Tax ₹60.8 Cr; EPS ₹41.65.

Capital Structure & Liquidity

• Mar-26: Total equity ₹307 Cr; total assets ₹502.9 Cr.
• Borrowings ₹68.7 Cr; cash ₹6.3 Cr (Mar-26).
• Net cash from operating activities ₹68.0 Cr.
• Consolidated cash flow: investing ₹₹165.6 Cr; financing ₹₹101.6 Cr.
• Ending cash balance ₹6.3 Cr as of Mar-26.

Strategic Priorities & Outlook

• AI/Industrial automation focus across Semiconductor, Electronics, Solar, Engineering, Aerospace.
• Capex: ₹510 Cr Karnataka expansion; two new facilities at Dabaspet and Sriperumbudur.
• MoU supports ESDM-led design-led manufacturing expansion and employment growth.
• AI capabilities: yield enhancement, AI assistant, parameter tuning, MLOps, predictive maintenance.

Governance & Leadership

• Managing Director Rabindra Srikantan continues as MD.
• Board includes Independent Director M. Lakshminarayan; directors Shekar Viswanathan, Ramesh Radhakrishnan, Preeti Rabindra, Hardik Agrawal.