Auto component maker Rane (Madras) Limited has received its board's approval to raise Rs 50 crore from promoters.
The company informed stock exchanges on Monday that the board had approved its fundraising plan, “including by way of issuance of equity shares and/or convertible securities to the promoter/promoter group up to Rs 50 crore on a preferential basis”.
Rane (Madras), a manufacturer of steering and suspension products and die casting components, reported a negative profit before tax (PBT) of Rs 10.8 crore in the July-September quarter of 2019-20, compared to a profit of Rs 13.1 crore in the same quarter last year.
The company’s total net revenue for the quarter was Rs 331.2 crore, compared with Rs 400.8 crore in the year-ago period — a decline of 17.3 per cent.
"A volume drop in the domestic market resulted in significant challenges for our India operations. We expect the sluggish demand environment in India to continue for a few quarters. The management is working on various cost-reduction projects to partially mitigate the impact of a volume drop. The US subsidiary is stabilising the volumes on new businesses and working on several systematic operational improvement projects," said Rane Group Chairman L Ganesh.