ARSS Infrastructure Projects Plans ₹250 Crore Preference Share Issue to Strengthen Financial Position
ARSS Infrastructure Projects Limited has announced key strategic decisions following its Board of Directors meeting held on July 23, 2026. The company has approved a proposal to raise up to ₹250 crore through the issuance of Non-Cumulative Non-Convertible Redeemable Preference Shares (NCRPS) on a private placement basis. Alongside the fund-raising plan, the board also approved an increase in the company’s authorised share capital to support the proposed issuance.
₹250 Crore Fund Raise Through Preference Shares
As per the regulatory filing, ARSS Infrastructure Projects Limited will issue up to 2.5 crore Non-Cumulative Non-Convertible Redeemable Preference Shares having a face value of ₹100 each, aggregating to ₹250 crore. The securities will be allotted through private placement to Ocean Capital Market Limited, one of the promoters of the company.
The issue is subject to shareholders’ approval and may be completed in one or more tranches as decided by the Board.
Key Features of the Preference Share Issue
The proposed NCRPS issue includes the following terms:
- Issue Size: Up to ₹250 crore
- Investor: Ocean Capital Market Limited (Promoter)
- Instrument: Non-Cumulative Non-Convertible Redeemable Preference Shares
- Issue Method: Private Placement
- Tenure: 22 months from the date of allotment of each tranche
- Dividend: 0.01% per annum (non-cumulative)
- Security: Unsecured
- Listing: The preference shares will not be listed on any stock exchange.
Redemption to Offer 12% Annual Internal Rate of Return
The company stated that the preference shares will be redeemed at the end of their 22-month tenure. The redemption premium has been structured to provide investors with an Internal Rate of Return (IRR) of 12% per annum, making the instrument an attractive long-term financing option for the promoter investor.
Authorised Share Capital to be Increased
To facilitate the proposed fund raising, the Board also approved an increase in the company’s authorised share capital, subject to shareholders’ approval. This move will enable ARSS Infrastructure Projects Limited to issue the proposed preference shares under the Companies Act, 2013 and applicable SEBI regulations.
Independent Valuation Completed
The company has obtained an independent valuation report dated July 23, 2026 from a registered valuer to support the pricing and issuance of the preference shares, ensuring compliance with applicable regulatory requirements.
What It Means for Investors
The proposed ₹250 crore capital infusion is expected to strengthen ARSS Infrastructure Projects Limited’s financial position by providing additional long-term capital through promoter funding. Since the instrument is non-convertible and redeemable, existing equity shareholders will not face equity dilution from this transaction.
The move also reflects continued promoter support for the company and provides additional financial flexibility for future business requirements while maintaining an optimal capital structure.