Precision Wires India raises $16M in convertible debentures to fund expansion
What's the deal? Precision Wires IndiaDealroom has a profile for this one. Try Dealroom → has raised US$20.4M through a preferential issue of compulsorily convertible debentures. It allocated 3,750,000 unsecured 12% debentures at US$5.43 each to non-promoter institutional investors Anchorage Capital Scheme IIIDealroom has a profile for this one. Try Dealroom → (US$10.9M) and AADI Financial Advisors LLP (US$9.51M).
What's the endgame? The company earmarked US$12.2M for working capital and US$8.15M for capacity expansion at its Silvassa and Zaroli facilities. The debentures convert into equity shares on a 1:1 basis within 12 to 18 months of allotment.
Why now? The raise lands during a strong power transmission capital expenditure cycle, and Precision Wires' operations are working-capital-intensive. The infusion joins a US$27.2M IDFC First BankDealroom has a profile for this one. Try Dealroom → credit line, while its Zaroli plant begins trial production of copper cathodes to secure captive inputs.
By the numbers: Operational revenue rose 59.49% year-on-year to US$241.6M in Q1 FY27, up from US$151.5M. Net profit jumped 71.47% to US$6.31M, from US$3.68M a year earlier.
What could go wrong? The company faces volatility in global copper prices, potential delays in final commercial permits for the Zaroli plant, and lingering recovery from flood-induced production halts at Silvassa.
The signal: India's winding wire sector is expanding on the back of grid, renewable, and industrial infrastructure investment. The structured debenture deal lets Precision Wires secure non-dilutive capital now while phasing in equity conversion, aligning its capacity push with national infrastructure demand.
Read more: sahi.com
Image credit: libraryofcongress
