Precision Wires India Limited (NSE:PRECWIRE) filed an exchange intimation on 12 August 2026, notifying an Extra Ordinary General Meeting scheduled for 5 September 2026, to seek shareholder approval for issuing 37,50,000 unsecured, unlisted, 12% Compulsory Convertible Debentures on a preferential basis, aggregating Rs 150 crore.
Key Highlights
- The EGM is scheduled for Saturday, 5 September 2026, at 11:30 a.m. IST, to be held via video conferencing or other audio-visual means.
- The company proposes to issue 37,50,000 CCDs at a face value of Rs 400 each, for a total consideration of Rs 1,50,00,00,000 (Rs 150 crore) on a preferential basis.
- The two proposed allottees are Anchorage Capital Scheme-III (AIF Category II), for Rs 80 crore, and AADI Financial Advisors LLP, for Rs 70 crore; both are non-promoter investors.
- The cut-off date for e-voting eligibility is 31 August 2026, with remote e-voting open from 2 September 2026 to 4 September 2026, using the NSDL platform.
About the Company
Precision Wires India Limited (NSE:PRECWIRE), headquartered at Prabhadevi, Mumbai, manufactures enamelled copper winding wires and allied products used in electrical motors, transformers, and other industrial applications. Its primary manufacturing facility is located at Silvassa in the Union Territory of Dadra and Nagar Haveli. The company is listed on both BSE (code: 523539) and NSE.
Announcement in Detail
The EGM notice, dated 10 August 2026 and filed with exchanges on 12 August 2026 by Company Secretary Deepika Pandey, contains a single special business item: approval for issuing 37,50,000 unsecured, unrated, and unlisted 12% CCDs at Rs 400 per CCD to two non-promoter investors on a preferential basis under SEBI ICDR Regulations, Chapter V. The relevant date for determining the floor price is set as 6 August 2026, being 30 days prior to the EGM date.
Each CCD converts into one equity share of face value Rs 1 at a premium of Rs 399, in a 1:1 ratio. Conversion can be exercised by the investor anytime between 12 and 18 months from the allotment date. If the investor does not act, automatic conversion occurs on the last day of the 18th month. The resulting equity shares will rank pari-passu with existing shares in all respects, including dividend and voting rights, and will be subject to the lock-in period prescribed under SEBI ICDR Regulations.
Impact on Investors
Investors will note that the proposed CCD issuance, if approved at the EGM, will introduce potential equity dilution. Upon conversion of all 37,50,000 CCDs, the outstanding equity share count will increase by that number, which shareholders will observe proportionately reduces the percentage stake of existing equity holders. The disclosed terms indicate that conversion will occur no later than 18 months from allotment, making dilution a time-bound certainty rather than a contingent outcome.
The filing shows the allotment is limited to non-promoter investors, so promoter shareholding percentage will decline on a relative basis post-conversion. The conversion price of Rs 400 per share (Rs 1 face value plus Rs 399 premium) is the key reference figure; the actual floor price will be determined by the SEBI ICDR formula as of the relevant date of 6 August 2026. The EGM outcome, including vote percentages, has not yet been disclosed, as this is a notice filing only.
Sector / Market Context
India's electrical equipment and winding wire sector is closely linked to transformer and motor manufacturing demand, which in turn is driven by domestic power infrastructure spending. The government's ongoing investments under schemes such as the Revamped Distribution Sector Scheme (RDSS) support demand for winding wire products, providing a broader backdrop against which this fund-raising announcement can be read.