Bangalore-based Dynamatic Technologies Ltd, which designs and builds engineering products for aerospace and automotive sectors, has proposed a plan to raise up to Rs 100 crore ($16.35) through qualified institutional placement (QIP), as per a stock market disclosure.
The company is holding an extra-ordinary general meeting on October 11, 2014 for getting shareholders approval for the move. The funding will be a mix of equity/equity-linked instruments or other securities in one or more tranches.
The company did not give specific detail on the use of the funds proposed to be raised but said it needs additional funds to meet with the needs of growing business.
Dynamatic Technologies counts Samena Special Situations Fund among its shareholders. Samena holds around 8.5 per cent stake in the public listed firm.
Dynamatic Technologies, which was founded in 1973, manufactures hydraulic gear pumps, hydraulic valves, hydraulic pumping units, custom-made hydraulic solutions, marine power packs, turnkey industrial instrumentation and aircraft ground-support systems.
The firm has three manufacturing facilities, located in Bangalore, Germany and Swindon, UK. The company and its subsidiaries employ around 550 people.
Recently, it signed an agreement with an unnamed buyer for sale of additional non-core assets for Rs 70 crore ($11.9 million), as part of its initiatives to reduce its overall debt. In March this year, the firm had said it has disposed of non-core assets for about Rs 28.54 crore.
Shares of Dynamatic Technologies ended at Rs 1,882 each, up 0.52 per cent on BSE in a strong Mumbai market on Wednesday.