Owais Metal and Mineral Processing Approves ₹50.07 Crore Preferential Issue; Stock Rises 1.40%

Mumbai, October 9, 2025: Owais Metal and Mineral Processing Ltd (NSE: OWAIS) share price climbed by 1.40% to ₹533 as of 2:02 PM on Thursday, as the board of the company sanctioned a ₹50.07 crore preferential allotment of equity shares and convertible warrants to be issued to promoters and select investors.

Owais Metal and Mineral Processing Ltd (CIN: L14290MP2022PLC063833), headquartered in Ratlam, Madhya Pradesh, is a specialty manufacturer of ferro and silica manganese. Listed on the NSE SME Emerge platform, the company focuses on sustainable metal recovery and value-added mineral processing. Its recent foray into electrolytic manganese dioxide (EMD) and precious metal recovery marks a strategic expansion into green and circular manufacturing, aligning with India’s growing clean-tech supply chain.

Preferential Issue Snapshot

The Board of Directors, in its meeting held on October 8, 2025, sanctioned a preferential issuance of up to a maximum of 10.65 lakh securities, comprising 8.07 lakh equity shares and 2.58 lakh convertible warrants, at ₹470 per share or warrant, including a premium of ₹460.

Under this allotment

• Equity Shares: 8,07,420 shares will be allotted to 74 public subscribers, raising a total of ₹37.95 crore.
• Convertible Warrants: 2,58,000 warrants to be issued to 2 promoters, raising ₹12.13 crore.

The total preferential issue of 10,65,420 units will be allotted to 76 subscribers, generating ₹50.07 crore in total proceeds for the company.

Key allottees include 1955 Venture Fund, Nav Capital Emerging Star Fund, and promoter group members Sayyed Akhtar Ali and Sayyed Owais Ali, who together will subscribe for 2.58 lakh warrants. Upon conversion of these warrants, the promoters’ combined holding is expected to increase to 73.01% from the current 70.31% of the company’s total equity capital.

Post-Issue Shareholding Pattern

Following the preferential allotment, Owais Metal and Mineral Processing Ltd will see a slight adjustment in its ownership structure. The promoters’ stake will decline from 73.01% to 70.31%, while the public shareholding will increase from 26.99% to 29.69%. The company’s outstanding shares will rise from 1.81 crore to 1.92 crore, reflecting the additional equity issued through the latest preferential allotment

Strategic Outlook: New Growth Verticals

The company is foraying into two high-value sustainability-linked businesses:

1. Production of Electrolytic Manganese Dioxide (EMD), a significant battery substance for lithium-ion as well as for alkaline batteries.
   • Phase 1 Capacity: 3,370 tonnes per year
   • Expected EBITDA Margin: ~38%
   • Goal: To achieve forward integration of their manganese processing activities based on India’s energy transition and battery boom.
2. Precious Metal Recovery from industrial and mining wastes through eco-friendly leaching technology.

• Capacity: 100 tonnes of input per day
• Expected EBITDA Margin: ~35%
• Goal: Monetize metal residues while reducing environmental toxicity.

Both projects will contribute to high adjusted EBITDA margins, stable cash flows, and long-term shareholder value through a circular-economy model.

Market Reaction

As of 2:02 PM IST, shares of Owais Metal and Mineral Processing Ltd were trading at ₹533, up from the previous close of ₹525.65. The stock saw a volume of 58,500 shares, translating to a total traded value of ₹307.97 lakh, with a VWAP of ₹545.31. The company’s market capitalisation stood at ₹957 crore, while its beta was recorded at 1.39, indicating moderate volatility. Intraday, the scrip touched a high of ₹580.00 and a low of ₹524.00, within a circuit band of ₹420.55 to ₹630.75. Over the past 52 weeks, the stock has moved between ₹400.00 and ₹1,530.00, with an all-time high of ₹1,569.00 and an all-time low of ₹274.60, reflecting its wide trading range and active investor participation.

REF:https://nsearchives.nseindia.com/corporate/OWAIS_09102025003931_MANAGEMENT_OUTLOOK.pdf

https://nsearchives.nseindia.com/corporate/OWAIS_09102025003322_Outcome_of_BM_signed.pdf

https://nsearchives.nseindia.com/corporate/OWAIS_09102025000813_Outcome_of_BM_signed.pdf

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations