After a long time, there are some new developments in the company. On September 20, 2024, Emmbi issued 15,50,000 convertible warrants at a price of ₹109 per share, raising ₹10.63 crore. The funds were raised from Kitec Industries (India) Private Limited, a company in the promoter group category.
Avinash Laddha, Managing Director of Kitec Industries, has been a part of Emmbi’s promoter group for a long time. Additionally, Makrand Appalwar (MD of Emmbi), is also Director at Kitec Industries.
Kitec Industries post preferential issue will hold over 8% of Emmbi’s shares.
The last time promoters infused capital was in 2012. Since then, the promoters have gradually increased their stake in the company from 52.2% to 59.83%. After this latest issue, the promoters holding is expected to rise to ~68%.
Kitec Industries is involved in manufacturing, supplying and exporting of easy to install pipes for plumbing and many other applications. The company was promoted as a joint venture with KITECHNOLOGY BV of Netherlands to manufacture revolutionary Multilayer Composite Pipes in India.
Financials of Kitec industries is pretty good compared to the emmbi industries.
I believe there could be a possibility of a merger between Emmbi industries and Kitec Industries in the near future.
Disc. I have made a tracking investment in the company after preferential issue announcement.
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