PNN
New Delhi [India], September 10: Concord Control Systems announced that its board of directors had approved a significant proposal to issue 3,18,472 equity shares on a preferential basis to non-promoter entities. The announcement attracted considerable attention from investors, especially after it was revealed that renowned investors Ashish Rameshchandra Kacholia and Asha Mukul Agrawal (wife of prominent investor Mukul Agrawal) were among the recipients of the new shares.
In a detailed exchange filing, Concord Control Systems disclosed that the board had approved the preferential issue of 3,18,472 fully paid-up shares, each with a face value of Rs 10. These shares are being offered at a premium price of Rs 1,570 per share, including a security premium of Rs 1,560, bringing the total value of the issue to approximately Rs 50 crore.
The preferential issue was planned, with shares being allocated to four non-promoter entities: Ashish Rameshchandra Kacholia, Asha Mukul Agrawal, Opuleny Advisors and Consultants LLP, and Everest Finance & Investment Co. The stakes post-issuance are significant and demonstrate the company's strategic intention to bolster its shareholder base with seasoned investors.
The newly issued shares have been distributed among four non-promoter entities, with Ashish Rameshchandra Kacholia receiving 76,433 shares, translating to a 1.21% stake, and Opuleny Advisors and Consultants LLP acquiring 70,064 shares, resulting in a 1.11% stake. Asha Mukul Agrawal has been allotted 95,542 shares, leading to a 1.52% stake, while Everest Finance & Investment Co. has also received 76,433 shares, equivalent to a 1.21% stake. Collectively, these four entities will hold a combined 5.05% stake in Concord Control Systems, representing a total investment of Rs 50,00,01,040.
The entry of Ashish Kacholia, a well-known ace investor with a track record of identifying multi-bagger stocks, has drawn particular attention. On the other hand, Mukul Agrawal, another seasoned investor, had already established a presence in the company, holding 2,40,000 shares or a 4.01% stake as of the March quarter.
The preferential share issue by Concord Control Systems, coupled with the backing of high-profile investors like Ashish Kacholia and the Agrawal family namely Navin Agarwal - Managing Director and Chief Executive Officer at Motilal Oswal and his wife Shital Navin Agarwal, has undoubtedly strengthened the company's market position.
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