EMS stock in focus after successfully raising ₹150 Cr via preferential issue

This EMS stock with over 20 years of expertise that offers end-to-end design, engineering, and manufacturing solutions for mission-critical applications is in focus after a recent Rs. 150 crore fundraise will support capacity expansion and rising demand, especially in the aerospace and defence sectors.

With market capitalization of Rs. 1,617 cr, the shares of Vinyas Innovative Technologies Ltd were trading at Rs. 1,289 per share, after falling 0.42% earlier in the session from the previous close of Rs. 1,295.35, reaching today’s high of Rs. 1,343 share.

Vinyas Innovative Technologies Limited, a Mysuru-based electronics manufacturing services (EMS) provider, serving global OEMs and ODMs across the defence, aerospace, medical, and industrial sectors, has successfully raised Rs. 150.04 crore through a preferential issue of warrants 

The fundraise was led by marquee investors including Singularity Ventures (backed by Madhusudan Kela), Chartered Finance & Leasing Ltd, and other institutional and private investors.

The preferential issue involved 13,64,000 warrants, each convertible into one equity share at an issue price of Rs. 1,100 per warrant. The total proceeds from this issue amount to Rs. 150.04 crore. The funds will be used to strengthen working capital and expand the company’s production capacity to meet rising demand.

Vinyas also announced that it has received the prestigious NADCAP Accreditation for Electronics, Printed Board Assemblies, awarded by the Performance Review Institute (PRI). This recognition affirms the company’s adherence to strict global aerospace quality standards and further enhances its position as a trusted supplier in critical sectors.

Commenting on the development, Mr. Narendra Narayanan, Managing Director of Vinyas, said, “The Rs. 150 crore fundraise and our current Rs. 1,018 crore order book (as of May 31, 2025) places us in a strong position to scale operations. The NADCAP Accreditation further boosts our credibility with aerospace and defence clients, opening new growth opportunities. With India targeting Rs. 50,000 crore in defence exports by 2029, we are well-aligned to support and benefit from this growth.”

The company has reported a strong profit growth with a 5-year CAGR of 71.2%. Return on Capital Employed (ROCE) stands at 16.3%, while Return on Equity (ROE) is at 14.1%.

Sales rose by 25%, increasing from Rs. 317 crore in FY24 to Rs. 397 crore in FY25. Operating profit also grew from Rs. 33 crore to Rs. 41 crore, and net profit improved from Rs. 15 crore to Rs. 19 crore over the same period.

Additionally, Domestic Institutional Investors (DIIs) raised their stake from 2.75% in September FY24 to 3.5% in March FY25, reflecting growing institutional confidence in the company.

Defence & Aerospace remained the largest contributor in revenue at Rs. 309.42 crore, though its share declined slightly. The Industrial segment saw strong growth, more than doubling to Rs. 72.98 crore. Medical revenues grew modestly, while the Others segment saw a slight dip. The shift reflects growing diversification beyond defence.

Written by Manideep Appana

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