Visa Steel Ltd. has announced plans to raise up to ₹200 crore through the preferential issuance of 5 crore convertible warrants to its promoter group entity, VISA Industries Limited. Each warrant, priced at ₹40, is convertible into one equity share of ₹10 face value within 18 months. Upon full conversion, VISA Industries' stake in the company will increase from 14.33% to 40.17%. An Extraordinary General Meeting (EGM) is scheduled for November 2, 2025, to seek shareholder approval for this proposal.
---
Strategic Fundraising Initiative
Visa Steel Ltd., a prominent player in Odisha's steel industry, is set to bolster its financial position by raising up to ₹200 crore. The company has proposed the preferential issuance of 5 crore convertible warrants to its promoter group entity, VISA Industries Limited. Each warrant is priced at ₹40 and is convertible into one equity share of ₹10 face value within a period of 18 months from the date of allotment. This move is aimed at strengthening the company's capital base and supporting its growth initiatives.
---
Impact on Ownership Structure
The proposed conversion of the warrants will significantly alter the ownership structure of Visa Steel. Currently, VISA Industries holds a 14.33% stake in the company. Upon full conversion of the warrants, its shareholding will increase to 40.17%, thereby enhancing its influence over the company's strategic decisions. This substantial increase underscores the promoter group's commitment to the company's long-term success and aligns their interests with those of other shareholders.
---
Governance and Shareholder Approval
To proceed with the proposed fundraising, Visa Steel has scheduled an Extraordinary General Meeting (EGM) for November 2, 2025. During this meeting, shareholders will be asked to approve the preferential issue of convertible warrants. The outcome of this EGM will determine the company's ability to move forward with the capital raise and implement its planned initiatives.
---
Market Implications
The announcement has generated interest in the market, with Visa Steel's share price reflecting investor sentiment. As of October 3, 2025, the stock closed at ₹45.27, marking a 42.9% increase over the past six months and a 31.45% rise over the past year. The proposed capital raise and the potential increase in the promoter group's stake may influence investor perceptions and the company's market valuation.
Comments