Shares of ASM Technologies surged sharply on Wednesday, climbing as much as 10% to touch an all-time high of ₹6,990. The rally came after the company’s board approved a ₹525.99-crore preferential issue, with four non-promoter investors set to receive shares, including entities associated with Avenue Supermarts promoter Radhakishan Damani and investor Mukul Agrawal.
The board has cleared the preferential allotment of up to 10.78 lakh equity shares, each having a face value of ₹10, at an issue price of ₹4,875 per share. The proposed issue will raise ₹525.99 crore, according to the company’s exchange filing. The board’s approval covers 10,78,974 equity shares and the issue is subject to the required shareholder approval.
The proposed allottees comprise SBI Mutual Fund through its various schemes, SBI Emergent India Fund, a scheme of SBI Alternate Equity Fund, Derive Trading and Resorts Pvt Ltd and Asha Mukul Agrawal. All four are classified as non-promoter investors.
Among the proposed investors, Derive Trading and Resorts Pvt Ltd is associated with Avenue Supermarts promoter and Dalal Street veteran Radhakishan Damani. The preferential issue also brings Asha Mukul Agrawal into the spotlight, with her investment coming after Mukul Agrawal already held a 10.28% stake in ASM Technologies.
ASM Technologies preferential issue: Who gets what?
The proposed allotment will significantly add new institutional and non-promoter ownership to the company. SBI Mutual Fund, through its various schemes, will receive 8,22,564 shares, translating into a 5.25% post-issue stake. SBI Emergent India Fund will be allotted 1,02,564 shares and will hold 0.65% after the issue. Derive Trading and Resorts Pvt Ltd will also receive 1,02,564 shares and hold 0.65%.
Asha Mukul Agrawal will be allotted 51,282 shares, giving her a 0.33% stake following the preferential issue.
Before the proposed allotment, promoter entities owned 57.65% of ASM Technologies at the end of the June quarter, while public shareholders accounted for the remaining 42.35%.
The company also had more than 27,000 small retail shareholders at the end of the June quarter. These shareholders, defined as those with Authorised Share Capital of up to ₹2 lakh, collectively held a 16.96% stake in ASM Technologies.
The company is also set to convene an Extraordinary General Meeting on October 4, 2026, to seek shareholder approval for the preferential issue.
ASM Tech share price trend
The preferential issue announcement has added another trigger to what has already been a stellar run for ASM Technologies in 2026. The stock price has rallied 200% over the last six months, while shares have gained almost 40% in the past one month.
After touching the intraday high of ₹6,990 following a gain of as much as 10.2%, ASM Technologies shares were still trading 4.6% higher at ₹6,640 on Wednesday. The stock has risen 38% over the last one month, while its gains over the last 12 months stand at 77%.
ASM Technologies operates in the engineering services and product research and development space. The company provides consulting and product development solutions to global clients and brings more than two decades of experience to the business.
Its operations are supported by development and support centres in India as well as overseas markets. ASM Technologies has a presence across the US, Singapore, UK, Canada, Mexico and Japan, giving the company an international footprint in engineering services and product R&D.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
