Vardhman Special Steels Limited (BSE:534392) announced that it has entered into share subscription and investment agreement with new investor Aichi Steel Corporation (TSE:5482) for private placement of 4,629,629 shares at a price of INR 108 per share for gross proceeds of INR 499,999,932 on August 10, 2019. The company will issue shares on a preferential basis at a premium of INR 98 per share on face value of INR 10 per share. The investor will acquire 11.46% stake in the company.

The investor has a right to appoint a director to the company's board. The transaction was approved by the board of directors of the company. The transaction is subject to approval from shareholders of the company.