Century Extrusions Ltd has announced a rights issue to raise ₹45 crore. The company will offer 3 crore shares at ₹15 each to existing shareholders, with a record date of September 15, 2026. Proceeds will be used to pay off debt and fuel a brownfield expansion at its Kharagpur facility.
Century Extrusions Announces ₹45 Crore Rights Issue
Issue Size: 3,00,00,000 equity shares at ₹15 per share.
Total Fundraise: ₹4,500 lakhs.
Reader Takeaway: The rights issue supports debt reduction and Kharagpur plant expansion, though payment is split into multiple tranches.
What just happened
Century Extrusions has officially announced a rights issue to raise up to ₹45 crore. Shareholders will be offered 3 rights shares for every 8 existing shares held. The issue price is set at ₹15 per share, comprising a ₹1 face value and a ₹14 premium. The process begins on September 23, 2026, and closes on October 14, 2026.
Why this matters
The capital infusion is primarily aimed at strengthening the balance sheet and supporting growth. The company plans to allocate ₹14 crore for the repayment of unsecured loans and ₹20 crore as working capital for its brownfield expansion at the Kharagpur plant. The remaining ₹9.9 crore is earmarked for general corporate purposes.
The backstory
The company has shown consistent top-line growth over the last three years, with revenue increasing from ₹37,510 lakhs in FY2024 to ₹47,856 lakhs in FY2026. Profit after tax has also improved, rising to ₹1,097 lakhs in the latest audited fiscal year. This rights issue comes at a time when the firm is finalizing a new extrusion press to increase capacity by 9,000 MT.
What changes now
Investors holding shares as of the September 15, 2026, record date are eligible to participate. A key feature of this issue is the payment structure: shareholders pay ₹7.5 per share on application, with the remaining balance due in up to two calls by January 31, 2027. Promoters have committed to fully subscribe to their entitlement and may seek additional shares.
Risks to watch
While the expansion is expected to commence commercial production in October 2026, the project is subject to standard execution risks. Additionally, investors should be mindful that the equity shares are partly paid-up, requiring future capital commitments.
What to track next
Watch for the announcement of the formal letter of offer and potential updates regarding the operational status of the new Kharagpur extrusion press in late 2026.