Yash Highvoltage, a manufacturer of transformer bushings for the power generation, transmission, and distribution sectors, has approved a preferential issue of equity shares and convertible warrants worth approximately ₹1.51 billion (~$16 million).

The company’s board approved the issuance of up to 1,262,131 equity shares and 832,177 convertible warrants at an issue price of ₹721 (~$7.62) per security. Each warrant will be convertible into one equity share.

Yash Highvoltage said the proceeds will be used to expand manufacturing and testing infrastructure, enhance existing facilities, and support growth initiatives in the transformer bushing business.

A significant portion of the planned investment will be directed toward expanding the company’s resin-impregnated paper (RIP) bushing manufacturing capabilities from the currently planned 245 kV range to 550 kV. The expansion aims to enable Yash Highvoltage to operate in the extra-high-voltage transmission equipment segment.

Yash Highvoltage plans to establish additional assembly and testing infrastructure, including high-voltage testing facilities and equipment required for the development, validation, and qualification of 550 kV RIP bushings. It also aims to invest in engineering, product development, and certification capabilities to meet domestic and international market requirements.

The company plans a brownfield expansion of its existing oil-impregnated paper bushing manufacturing facility. Yash Highvoltage said the expansion is intended to address growing demand from transformer manufacturers, utilities, and power infrastructure developers.

Monarch Networth Capital acted as the exclusive financial advisor and sole investment banker for the proposed transaction.

Transformers are the costliest equipment in a switchyard/substation. They are expected to serve the entire life of the substations, which is 35 years.

However, the Central Electricity Authority (CEA) said the national distribution transformer failure rate averages around 10% or nearly 1.3 million failures annually.

In an earlier report, the CEA attributed transformer failures to normal aging, insulation system and bushing faults, system faults, transient overvoltage generated by the systems, and the absence of prudent maintenance practices.