SPML Infra Limited, India’s leading water and energy infrastructure company has allotted 693,999 equity shares and 9,539,449 convertible warrants on a preferential basis, in a move aimed at raising fresh growth capital and converting existing debt into equity. The allotment was approved by the Board of Directors through a circular resolution passed on July 18, 2026.
The equity shares were issued at a price of Rs 186 per share, including a premium of Rs 184 per share, while the warrants were also priced at Rs 186 each. In accordance with the SEBI (ICDR) Regulations, 2018, the warrants will be converted into equity shares within 18 months from the date of allotment.
Capital Infusion and debt conversion
The preferential issue brings in a fresh capital infusion of Rs 57.5 million through equity shares issued to non-promoters. In a significant balance sheet strengthening step, National Asset Reconstruction Company Ltd (NARCL) has converted an existing loan of Rs 71.6 million into 3,84,858 equity shares of the company.
The warrants have been allotted to a mix of promoter group entities and non-promoters. The company has received the initial 25 per cent of the warrant subscription amount, totalling Rs 443.6 million, with the remaining 75 per cent to be infused at the time of conversion of warrants into equity shares. Upon full conversion of all warrants, the promoter group’s shareholding in the company is expected to be close to 42 per cent, reflecting the promoters’ continued confidence and commitment to the business.
Vijay Kedia family bets big on SPML Infra
A key highlight of the preferential issue is the continued conviction shown by ace investor Vijay Kedia, who had acquired 1,498,107 shares of the company in January 2026 through Kedia Securities Limited and continues to hold this entire stake, reaffirming his long-term confidence in the company. Adding further to the family’s position, his wife, Manju Vijay Kedia, has now participated in the current preferential issue by subscribing 1,345,000 warrants.
Upon conversion of these warrants, the combined holding of Kedia Securities Limited and Manju Vijay Kedia will rise to 2,843,107 shares. On the expanded equity base following the preferential issue and full conversion of all warrants, this translates into a total stake of close to 3 per cent of the company.
The sustained and increased participation of one of India’s most valued investors is being viewed as a strong endorsement of SPML Infra’s turnaround and future growth prospects. It may be noted that any change in percentage holding is purely on account of the enlarged share capital, and not due to any reduction in the Kedia family’s shareholding, which has nearly doubled in absolute terms.
Landmark NTPC order strengthens BESS portfolio
The company’s momentum in the energy storage space received a major boost in April 2026, when it expanded its presence in the battery energy storage systems (BESS) segment with a landmark BESS implementation EPC order worth Rs 11.28 billion from NTPC Limited for its thermal power stations at Barauni, Bihar. This is one of the largest single order awarded in the BESS segment to date, reflecting its rapidly growing capability in the energy storage domain and its strategic positioning in India’s renewable energy transition.
Financial strength and robust order book
SPML has significantly strengthened its financial position in recent years. Since 2022, the company has infused Rs 8.19 billion through equity, including Rs 3.88 billion contributed by the promoters. It has also secured banking limits of Rs 5.05 billion, along with Rs 3.05 billion of surety bond limits, providing adequate financial flexibility for project execution, bidding, and development of its BESS and container manufacturing facilities.
The company’s debt obligations of approximately Rs 3.80 billion (including interest), payable over the next five years, are expected to be comfortably met through arbitration proceeds of approximately Rs 6.27 billion (including interest accrued up to March 2026), without placing material pressure on operating cash flows.
SPML’s order book stands at approximately Rs 53.69 billion, providing strong revenue visibility over the medium term. Of this, only around Rs 13.69 billion relates to legacy low-margin projects, while the remaining order book predominantly comprises projects with expected operating margins of 10 per cent or higher.
Improved credit profile
Reflecting its strengthened balance sheet and healthy business outlook, ICRA has upgraded SPML Infra’s long-term credit rating to BBB (Stable), while CRISIL has assigned a short-term credit rating of A3+ enhancing the company’s ability to access funding and compete for larger infrastructure opportunities across the water and energy sectors.