RATNAVEER PRECISION DECIDED TO POSTPONE THE EARLIER PROPOSED PREFERENTIAL ISSUE OF EQUITY SHARES
News: The company has decided to postpone the earlier proposed Preferential Issue of Equity Shares and Convertible Share Warrants. The decision is stated as they are not in need of such Working Capital due to postponement of certain upcoming projects.
Views: The company was eyeing inorganic growth via the fund raise which now is postponed. This will be negative as there might be some postponement of growth on account of acquisition. However we have not built in any growth in our estimates on account of the same and still believe the organic growth will naturally follow on account of capex done. But this development will have negative overhang on the stock.
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