According to a regulatory filing by the company, the ace investor is going to buy up to 6,00,000 unsecured compulsory convertible debentures (CCDs) worth Rs 30.9 crore.
Following the update, the scrip surged 5 per cent, its daily circuit limit, to Rs 716.9 on Monday, which is its new all-time high. BSE Sensex was trading higher by 323.85 points, or 0.62 per cent, at the same time.
The company will issue 6,00,000 CCDs at a price of Rs 515 per unit. Each debenture shall carry a simple interest rate of 15 per cent per annum.
The CCDs will be converted into equity shares at the end of 18 months from the date of allotment. The relevant date of the deal is July 26, 2021.
“The board approved the conversion price of equity share at the higher of the following: i) Rs 515 per share including the premium of Rs 505 per share, ii) Price as determined as per Regulation 164(1) of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, Relevant date referred to in regulation 161(a) to be considered for the same,” the filing added.
Raghav Productivity Enhancers is a ramming mass manufacturing company. Erstwhile known as Raghav Ramming Mass, the company is engaged in the business of manufacturing and selling silica ramming mass, quartz powder and trading of galvanized iron (GI) sheets.
Jhunjhunwala, who is also referred to as the Warren Buffet of India, has been quite bullish on the metal sector recently. He has been vocal about his new love for the sector.
Shares of Raghav Productivity Enhancers have gained as much as 2,400 per cent in the last five years. Listed at Rs 28.6 on April 13, 2016, shares of the company has surged to Rs 716.9 so far.
In the last one year, the multibagger has rallied 200 per cent. In the last month alone, the stock is up by 70 per cent.
