Craftsman Automation rallies nearly 7% ahead of board meet to review fund-raising

Shares of Craftsman Automation Ltd, a leading manufacturer of automobile parts, surged more than 7% in trade on April 24 (Wednesday) ahead of its board meeting scheduled this week to consider raising funds.

Craftsman Automation informed exchanges that the meeting of the board of directors of the company is scheduled on April 27 to consider and approve the proposal for raising of funds and to approve constitution of a fund-raising committee.

The company said that the proposed funds would be raised “in one or more tranches by issue of equity shares and/or any other instruments or eligible securities… by way of further public issue, debt issue, preferential allotment, rights issue, ADRs, private placement, qualified institutions placement (QIP), or any other method in accordance with the provisions of the Securities and Exchange Board of India…”

Craftsman Automation will also announce its earnings for the fourth quarter ended March 2024 (Q4FY24) during the board meeting on April 27.

An earnings conference call on financial results is scheduled to be held on April 29 (Monday) at 4 pm.

On Wednesday, the Craftsman Automation stock rallied as much as 7.8% to hit an intraday high of ₹4,648 on the National Stock Exchange of India (NSE). Notably, the share price has gained over 45% in the past one year, but is down 16% year-to-date in 2024.

Earlier this month, Chennai-based Craftsman Automation announced that it would set up a new plant in Rajasthan to augment its production capacity and meet growing market demands.

The new greenfield plant, which would be set up with an initial investment of ₹150 crore, would be based in Bhiwadi and is expected to become operational in the next 12 months.

Craftsman Automation shares closed 7.83% higher at ₹4,639 apiece on the NSE.