Precision Wires India Approves Dividend and Secures Working Capital

Precision Wires India has announced the approval of its audited financial results for the fiscal year ending March 31, 2025. The Board of Directors also declared a final dividend of ₹0.55 per equity share (55%), pending shareholder approval at the upcoming Annual General Meeting.

Key to supporting its growth and operations, the company has secured substantial working capital facilities. This includes an unsecured loan of up to ₹190 crore from RBL Limited and a secured loan of ₹350 crore from Axis Bank Limited, aggregating to ₹540 crore.

What Happened

The Board of Directors of Precision Wires India Ltd met on May 23, 2026, to approve the audited financial results for the financial year ended March 31, 2025. A final dividend of ₹0.55 per equity share has been proposed. Additionally, the company announced the approval of significant working capital facilities: ₹190 crore unsecured from RBL Limited and ₹350 crore secured from Axis Bank Limited.

Why It Matters

The dividend payout offers a direct return to shareholders. The substantial working capital facilities of ₹540 crore are crucial for supporting ongoing operations, managing inventory, and potentially funding expansion projects, thereby enhancing the company's financial flexibility and operational capacity.

Company Background

Precision Wires India is involved in manufacturing wires and cables. Securing working capital lines is a common practice for manufacturing companies to manage their day-to-day operations, especially in a growing or dynamic market.

What Changes Now

The company gains enhanced liquidity through the newly approved credit lines, enabling smoother execution of business plans and potentially faster response to market opportunities. The re-appointment of auditors and CFO ensures continuity in governance and financial management.

Potential Risks

The company is undergoing changes in its Memorandum of Association and Article of Association related to the further issue of capital, aligning with SEBI ICDR Regulations. This could signal future fundraising activities.

Industry Context

Precision Wires operates in the competitive wires and cables sector. Companies in this space often rely on robust working capital management to navigate raw material price fluctuations and order cycles.

Key Dates and Figures

• Financial Year End: March 31, 2025
• Board Meeting Date: May 23, 2026
• Final Dividend: ₹0.55 per share (55%)
• Unsecured Working Capital Facility: ₹190 crore from RBL Limited
• Secured Working Capital Facility: ₹350 crore from Axis Bank Limited

What to Watch

Investors will monitor shareholder approval of the dividend and how the company utilizes the new working capital facilities.