ASM Technologies shares have experienced exceptional momentum, zooming 49% in just six trading days following the board's approval of the preferential issue. The stock hit a new high of ₹7,248, soaring 11% in Thursday's intra-day trading, extending its past one-week rally. At 02:41 PM, the stock was quoted 10.8% higher at ₹7,225.05, significantly outperforming the 0.12% decline in the BSE Sensex. The average trading volume doubled with 100,000 equity shares changing hands on the BSE, compared to sub 50,000 shares traded in the past two weeks, as reported by Business Standard.
The board of directors of ASM Technologies approved a preferential issue of 10.78 lakh equity shares at their meeting held on September 9, 2026. According to reports from CNBC TV18 and The Economic Times, the shares carry a face value of ₹10 each and will be issued for cash at a premium price of ₹4,875 per equity share. The total issue size aggregates to ₹525.99 crore. The approval coincided with the stock hitting an all-time high, gaining as much as 10% to an intraday high of ₹6,990. The board's approval covers 10,78,974 equity shares and the issue is subject to the required shareholder approval.
The preferential issue attracted significant institutional participation with SBI Mutual Fund via its various schemes leading the investment at ₹401 crore for 8.23 lakh equity shares. SBI Emergent India Fund, a scheme of SBI Alternate Equity Fund, invested ₹49.99 crore for 1.03 lakh shares, while Derive Trading and Resorts Pvt Ltd, an entity belonging to Avenue Supermarts promoter Radhakishan Damani, invested ₹49.99 crore for 1.03 lakh shares. Asha Mukul Agrawal participated with ₹24.99 crore for 51,282 shares, adding to her existing 10.28% stake in the company. All investors are non-promoters of ASM Technologies.
The preferential issue will significantly alter the company's ownership structure. At the end of the June quarter, promoter entities held 57.65% stake while public shareholders comprised 42.35%. Post the preferential issue, the shareholding will be: SBI Mutual Fund will hold 5.25% (₹401 crore investment), SBI Emergent India Fund will have 0.65%, Derive Trading and Resorts Pvt Ltd will hold 0.65%, and Asha Mukul Agrawal will own 0.33%. More than 27,000 small retail shareholders with Authorised Share Capital of up to ₹2 lakh had a 16.96% stake at the end of June quarter. The company is set to convene an Extraordinary General Meeting on October 4, 2026, to seek shareholder approval for the preferential issue.
The company is positioned to capitalize on significant growth opportunities driven by technological advancement. According to Business Standard, the adoption of Artificial Intelligence, Industrial Automation, intelligent manufacturing and digital transformation initiatives across industries presents substantial growth opportunities for ASM Technologies. Growing investments in Semiconductor, Electronics, Solar, Aerospace, Medical and Engineering sectors, along with increasing demand for custom capital equipment and integrated Design-Led Manufacturing solutions, are expected to create new avenues for business growth. Government initiatives promoting electronics and semiconductor manufacturing, coupled with rising focus on localised manufacturing and supply chain diversification, further strengthen the opportunity landscape for the company.
