| Issue Value | ₹75.00 CrConvertible Warrants |
|---|---|
| Market Cap | ₹263.47 CrSmall Cap |
| P/E TTM | 25.42xSector 16.74x |
| 1Yr Price Change | 99.5%Performance |
| Deal value | ₹75 Cr |
| Share of market cap | 28.5% |
| Share of annual revenue | 24.0% |
Key highlights
- Proposed issue of 50,00,000 convertible warrants at ₹150 each, totaling ₹75 crore
- Proceeds represent 28.5% of the company's current market capitalization of ₹263.47 crore
- Allocation of ₹50 crore for land and electrical works and ₹25 crore for furnace equipment
- Company confirms conversion will not trigger SEBI Substantial Acquisition of Shares and Takeovers obligations
- Expected project trial run scheduled for the August-September 2027 period
Strategic Allocation for Capacity Expansion
Cubex Tubings is earmarking the ₹75 crore proceeds to bolster its manufacturing infrastructure in the specialized alloys segment. Specifically, ₹50 crore is slated for land and electrical works with a target completion in December 2026, while ₹25 crore will fund a vacuum induction melting furnace by July 2027. This capital injection is substantial relative to the company's ₹263.47 crore market capitalization.
The total project investment is estimated at ₹87 crore, which includes an additional ₹12 crore sourced from internal reserves. This move follows a board approval on October 14, 2026, to scale production capabilities for high-margin products.
Regulatory Compliance and Shareholder Milestones
- Extraordinary General Meeting (EGM) scheduled for November 6, 2026, to seek final shareholder approval.
- Clarification issued in response to NSE and BSE queries regarding takeover regulation triggers.
- Confirmation that warrant conversion will be executed strategically to avoid mandatory open offer obligations.
- Funding represents approximately 24% of the company's trailing twelve-month revenue of ₹312.39 crore.
- The issue price of ₹150 per warrant follows a board proposal initially announced on October 14, 2026.
Financial Trajectory and Sector Context
Operating within the copper and metals sector, Cubex Tubings has reported significant growth in the quarter ended September 30, 2026. Net profit surged 161.86% year-on-year to ₹4.57 crore, while quarterly revenue grew 12.6% to ₹82.99 crore. Operating margins improved to 8.62% during the period, up from 4.4% in the previous year.
This expansion plan aligns with management's October 24 guidance, which emphasized shifting the product mix toward higher-margin specialized alloys and seamless copper products. The company currently maintains a promoter holding of 44.42% with no pledged shares.
Takeover Regulation Clarification
The Company confirms that the proposed preferential issue of convertible warrants and the acquisition of equity shares upon conversion of those warrants... will be done strategically in a such a way that it doesn’t trigger an obligation to make an open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
| Date | Announcement | Amount |
|---|---|---|
| 30 Oct 2026 | Corrigendum to notice of Extraordinary General Meeting regarding preferential issue of convertible warrantsSource: NSE filing | ₹75.00 Cr |
| 24 Oct 2026 | Press release on Q2 FY27 performance and order intake across core engineering sectorsSource: BSE filing | ₹81.27 Cr |
| 23 Oct 2026 | Unaudited standalone financial results for the second quarter and half year ended 30 September 2026Source: market data.com | – |
| 14 Oct 2026 | Board approval for preferential issue of up to 50,00,000 convertible warrants at Rs 150 each to fund vacuum melting furnace projectSource: BSE filing | ₹75.00 Cr |
| 17 Sep 2026 | Board approval for capital raising proposal via debt securities or convertible instrumentsSource: NSE filing | ₹135.00 Cr |
| 13 Aug 2026 | Unaudited standalone financial results for the first quarter ended 30 June 2026Source: BSE filing | – |
What to watch next
- Shareholder voting results from the EGM on November 6, 2026
- Completion of land and electrical works by December 2026
- Delivery and installation of the vacuum induction melting furnace by July 2027
- Commencement of project trial runs in August-September 2027
| Share price | ₹184 |
|---|---|
| Market capitalisation | ₹263.47 Cr |
| Revenue (annual) | ₹288.01 Cr |
| Net profit (annual) | ₹7.45 Cr |
| Revenue (latest quarter) | ₹82.99 Cr+27.73% vs previous quarter |
| Net profit (latest quarter) | ₹4.57 Cr+246.35% vs previous quarter |
| P/E (TTM) | 25.42×Sector 16.74× |
| Promoter holding | 44.42%0.00% QoQ |
| FII holding | 0.8%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Cubex Tubings Limited providing clarifications on the proposed preferential issue of convertible warrants. Market figures from a third-party data provider.
