Presstonic Engineering announces INR 26.98-crore rights issue to fund working capital, reduce borrowings

Mumbai (Maharashtra) [India], February 05: Presstonic Engineering Limited, an NSE-listed company engaged in the manufacturing of metro rail rolling stock products, metro rail signalling products, and infrastructure products, has announced a ₹26.98-crore Rights Issue as part of its plan to strengthen the balance sheet and support business expansion.

The company, which was listed on the NSE EMERGE platform on December 18, 2023, supplies critical components to reputed global and domestic OEMs involved in the manufacturing and servicing of rail and metro rolling stock and signalling equipment.

Issue details: 1:1 rights offer at ₹35 per share

As per the issue structure, eligible shareholders will be offered rights shares in a 1:1 ratio, meaning they can apply for one rights equity share for every one equity share held as on the record date.

The issue price has been fixed at ₹35 per share, with a face value of ₹10 per share. The rights issue will open on February 6, 2026, and close on March 6, 2026. The record date for eligibility has been set as January 29, 2026.

Shareholders who do not wish to subscribe can also choose to renounce their Rights Entitlements (REs), which will be tradable on the stock exchange during the renunciation period. The last date for on-market renunciation is March 2, 2026.

Proceeds to be used for working capital, debt repayment and corporate purposes

Presstonic Engineering said it intends to deploy the funds raised through the rights issue towards strengthening operational efficiency and improving financial flexibility.

The company has proposed to use the issue proceeds for:

• Funding working capital requirements: ₹1,608.69 lakh

• General corporate purposes: ₹670 lakh

• Repayment or pre-payment of borrowings: ₹297.23 lakh

• Issue-related expenses: ₹121.70 lakh

The total issue size is ₹2,697.62 lakh, equivalent to ₹26.98 crore.

Industry observers note that working capital availability remains a key requirement for engineering and manufacturing companies catering to infrastructure supply chains, particularly where production schedules and delivery commitments require consistent procurement and execution planning.

Business profile: metro rail rolling stock, signalling and infrastructure products

Presstonic Engineering operates in a segment linked to India’s expanding metro and rail ecosystem, manufacturing products used in rolling stock systems, signalling requirements and supporting infrastructure.

The company supplies these products to global and domestic OEMs engaged in the rail and metro rolling stock and signalling equipment space, making it part of a broader supply chain supporting public transport modernization.

In a recent development, Presstonic Engineering has also expanded its product portfolio beyond core rail-linked components to include engineering and fabrication products such as commercial kitchen oven parts, support brackets, control housing tooling, shelf trolleys, mild steel products, infra wall-mounted items and stainless-steel pipes, among others.

Financial snapshot

Presstonic Engineering has shared its financial performance for reference, reflecting stable revenues and a focus on improving operational outcomes.

• For the period ended September 2025 (Limited Reviewed), the company reported revenue of ₹2,016.87 lakh, total income of ₹2,034.21 lakh, and profit after tax of ₹32.97 lakh.

• For the year ended March 2025 (Audited), revenue stood at ₹2,103.74 lakh, total income at ₹2,144.07 lakh, and profit after tax at ₹86.40 lakh.

• For the year ended March 2024 (Audited), the company reported revenue of ₹2,619 lakh, total income of ₹2,708.13 lakh, and profit after tax of ₹278.46 lakh.

How shareholders can apply

The company stated that shareholders can apply through the ASBA (Applications Supported by Blocked Amount) process, provided their bank supports the facility.

Eligible shareholders can apply online through net banking by selecting the rights issue under the ASBA/IPO section and entering required details such as DP ID, Client ID and the number of shares to be applied for. Those unable to apply online will receive a Composite Application Form (CAF) through the company’s Registrar and Transfer Agent (RTA), which can be submitted at a Self-Certified Syndicate Bank (SCSB) branch.

Additionally, investors who were not shareholders on the record date can participate by purchasing Rights Entitlements from the stock exchange during the trading period and then applying through ASBA.

Promoters and management

Presstonic Engineering is promoted by Mr. Herga Poornachandra Kedilaya and Mr. Yermal Giridhar Rao. The company’s leadership includes Mr. Kedilaya as Promoter & Managing Director, and Mr. Rao as Promoter, Joint Managing Director and Chief Financial Officer (CFO), along with a board comprising executive and independent directors.