The company, in an exchange filing, said the fundraising could involve equity shares or other securities convertible into equity, including debentures and warrants, and may be carried out in one or more tranches, subject to shareholder and regulatory approvals.
The board noted that the proposal is an enabling approval, with the timing, structure and pricing of the issue to be decided later, depending on market conditions and other factors such as dilution.
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In a related development, the board also approved an increase in the company’s authorised share capital from ₹51 crore to ₹61 crore, subject to shareholder approval, along with a corresponding amendment to its memorandum of association.
In February, MM Forgings’ CMD Vidyashankar Krishnan said the company expects a recovery in FY27 after a slowdown due to delayed customer programmes, with margins seen at 17–18%.
US exports, which had dropped to about 9% of sales, are now improving as customer offtake resumes, with a fuller recovery expected from March 2026, he added.
Shares of the company jumped 4% following the announcement, hitting the intraday highs of ₹432, but the stock has pared some of its gains since and is trading at ₹426.90 as of 1.07 pm, still 2.86% higher than Tuesday’s closing price. The stock has delivered 77.60% returns over the past 12 months.
