Kalashnikov has issued additional shares

26.03.2014 by Rostec

The company’s authorized capital has risen to RUB 2.6 billion

In accordance with a decision by the state corporation Rostec, the Kalashnikov concern has carried out the state registration of additional shares at a value of RUB 2.653 billion. Upon completion of corporate procedures, the authorized capital of the company will increase to RUB 2,653,100,000.

The Kalashnikov concern’s decision to issue an additional 2,653,000 shares at a nominal value of RUB 1,000 each was registered with the Bank of Russia on March 13, 2014. In accordance with the decision on the issuing of shares, they will all go through a closed agreement to Rostec, which currently owns 100% of the concern, and the company TransKomplekt Holding. As a result, Rostec will own 51% of Kalashnikov, with the remaining 49% of shares going to private investors.

“The increase of the authorized capital will have a positive impact on the liquidity and solvency of the enterprise, allowing us to mobilize financial resources to implement investment projects, as well as the modernization and expansion of production,” said Aleksei Krivoruchko, CEO of the enterprise.

The increase of the authorized capital will have a positive impact on the liquidity and solvency of the enterprise

Aleksei Krivoruchko, CEO of Kalashnikov concern

It is planned to use the profits from the additional issue of shares to repay the credit obligations of Kalashnikov to Sberbank and to implement other aspects of the company’s program for financial recovery. A final decision on this matter will be reached during a shareholders’ meeting after the completion of the stock offering.

The Kalashnikov concern (formerly known as Izhmash) is the Russia’s largest producer of automatic and sniper combat arms, guided artillery shells, and a wide range of civil products, including shotguns, sporting rifles, machines, and tools.

The enterprise was founded in 1807 and is now part of the state corporation Rostec. Kalashnikov unites large state enterprises in the Russia’s weapons industry (Izhmash and Izhevsk Mechanical Factory). In the future, the concern will also include the «Molot» machine building plant in the Vyatsko-Polyansky district, the L. N. Koshkin KBAL, and «Progress» NITI. The Kalashnikov products can be found in 27 countries, including the USA, UK, Germany, Norway, Italy, Canada, Kazakhstan, and Thailand.