Madhusudan Kela-backed firm picks stake in SME stock Yash Highvoltage via preferential issue

Shares of Yash Highvoltage rallied as much as 12.4% to their day’s high of Rs 940 on the BSE on Tuesday after ace investor Madhusudan Kela’s firm Anantroop Financial Advisory Services purchased nearly 14,000 shares in the company for Rs 1 crore.

The company, a leading manufacturer of transformer bushings for the power generation, transmission and distribution sector, approved a preferential issue worth up to approximately Rs 151 crore, subject to shareholder and other statutory and regulatory approvals.The company's board has cleared the issuance of up to 12.62 lakh equity shares and 8.32 lakh convertible warrants at an issue price of Rs 721 per security.

Each warrant will be convertible into one equity share, with the total fundraise aggregating up to around Rs 151 crore.Also Read | Madhu Kela to become investor in Lloyds Engineering as part of SISCOL acquisition, to receive nearly 73 lakh sharesThe preferential allotment comes amid a strong rally in the stock, with shares gaining 103% over the past six months and rising about 110% so far this year.Among institutional investors, Value Quest India GIFT Fund acquired 4.02 lakh shares of the company for around Rs 29 crore.

Market veteran Prashant Khemka’s WhiteOak Capital India Opportunities Fund purchased 3.25 lakh shares worth Rs 23.50 crore, while Motilal Oswal invested approximately Rs 15 crore, acquiring more than 2 lakh shares.The proceeds from the proposed issue will be used to fund Yash Highvoltage's next phase of growth, including the expansion of manufacturing and testing infrastructure, enhancement of existing facilities and strengthening of its position in the power equipment sector.A major portion of the investment will be directed towards expanding the company's Resin-Impregnated Paper (RIP) bushing manufacturing facility from the initially planned 245 kV range to 550 kV.

The move is expected to place Yash among a select group of manufacturers capable of serving the extra-high-voltage transmission segment, significantly widening its addressable market.The company plans to set up advanced assembly and testing infrastructure, including high-voltage testing facilities and specialised equipment needed for the development, validation and qualification of 550 kV RIP bushings.

It also intends to invest in engineering, product development and certification capabilities to meet global standards and cater to opportunities in both domestic and overseas markets.Additionally, Yash plans a brownfield expansion of its existing Oil-Impregnated Paper (OIP) bushing manufacturing facility to meet rising demand from transformer makers, utilities and power infrastructure developers.

The proposed investments are expected to increase manufacturing capacity, expand the product portfolio and further strengthen the company's technological capabilities.Also Read | Madhusudan Kela’s portfolio: 5 stocks rally up to 135%; 4 new Q4 bets revealed“The proposed fund raise marks an important milestone in Yash Highvoltage's growth journey.

We are grateful for the confidence shown by investors, whose support reinforces our conviction in the long-term opportunities emerging within the power generation and transmission sector.” Keyur Shah, Managing Director of Yash Highvoltage, said.

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