Cubex Tubings Ltd has announced a plan to raise ₹75 crore through the issuance of 50 lakh convertible warrants at ₹150 each. The funds will support an ₹87 crore expansion project, including site development and new furnace installation. The company has confirmed the issuance structure will not trigger SEBI mandatory open offer regulations, providing regulatory clarity ahead of the upcoming EGM on 6 November 2026.
Cubex Tubings Details ₹75 Crore Warrant Issuance Plan
Cubex Tubings Ltd is raising up to ₹75 crore through a preferential issue of 5,000,000 convertible warrants at ₹150 each. This capital will fund an ₹87 crore project, with the remaining ₹12 crore drawn from internal reserves.
Reader Takeaway: Expansion capital secured for infrastructure and machinery upgrades; investors should monitor execution timelines through late 2027.
What just happened
The company has finalized the details of its proposed preferential warrant issue, disclosing the specific allocation of funds to the BSE and NSE. The board has scheduled an Extraordinary General Meeting (EGM) for 6 November 2026 to seek shareholder approval for the capital raise.
Why this matters
This funding represents a significant expansion effort. The company is allocating ₹50 crore toward land, civil, and electrical works to be completed by December 2026. A further ₹25 crore is earmarked for a vacuum induction melting furnace, slated for installation by July 2027. The total project is expected to be fully operational by August or September 2027.
Regulatory Compliance
Management has proactively clarified that the conversion of these warrants into equity shares is structured to avoid triggering mandatory open offer obligations under SEBI’s Takeover Regulations. This move minimizes potential market uncertainty regarding sudden control changes or ownership shifts for retail shareholders.
What to track next
Shareholders should monitor the EGM outcome on 6 November 2026. Following approval, the focus will shift to the deployment milestones—specifically the civil works completion in December 2026 and the subsequent procurement of the vacuum induction melting furnace in mid-2027.