FII-Backed Penny Stock Under Rs 30 Announces Acquisition Deal of Rs 6.5 Cr

Textiles magnate and member of the Chiripal group, Vishal Fabrics Limited, which is based in Ahmedabad, has informed the public on Monday, clarifying further changes made to their investment in Nandan Industries Pvt Ltd.

As disclosed in the exchange notice, Vishal Fabrics has purchased an additional 528,100 equity shares of Nandan Industries at market prices of Rs 123 per share for a consideration of Rs 6.5 crores based on an independent valuation report dated 28th April 2025. As a result of this transaction, Vishal Fabrics Holdings' stake in Nandan Industries will increase from 23.17% to 35.41% of the company's equity share capital.

Nandan Industries Private Limited, which has been an 'Associate Company' of Vishal Fabrics since 29th March 2024 is actively involved in the manufacturing, weaving, bleaching, dyeing, mercerizing, printing, sizing, importing, and exporting of yarns and fabrics. Its authorized share capital stands at Rs 6.82 crores, whereas its paid-up share capital is 6.09 crores, consisting of 43,15,000 equity shares and 1,775,000 preference shares.

Vishal Fabrics commented that the further funding is consistent with their intention to deepen core functions and advance business activities in the coming years. "The intent of the acquisition is to drive further development and enhancement of business activities," the company stated in its release.

As a response, Vishal Fabrics' share price experienced strong upward momentum, surging more than 13% intraday from a prior close of Rs 25.85 to touch highs of Rs 29.25. The stock ultimately settled at Rs 28.72, closing the day over 11% higher.

The company's latest quarterly financial results are also showing an improving trajectory. For Q3FY25, Vishal Fabrics registered net sales of Rs 403.7 crore, reflecting a 5% increase along with a 32% increase in net profit, which reached Rs 9.6 crore when compared to Q2FY25. For the nine month period of FY25 (9MFY25), the company recorded net sales of Rs 1,128.4 crore along with a net profit of Rs 21.7 crore. In the full year FY24, the company was able to achieve net sales of Rs 1,450 crore, with a net profit of Rs 21 crore reported. Institutional investors have shown a great deal of interest in Vishal Fabrics. A foreign institutional investor (FII) purchased 21,15,000 shares at the same price in November 2024, while LEGENDS GLOBAL OPPORTUNITIES (SINGAPORE) PTE. LTD purchased 20,33,412 shares at Rs 28.46 a share. On the other hand, SBICAP Trustee Company Limited has increased the amount of stake in Vishal Fabrics it owns. By pledging shares, the corporation raised its ownership position from 0.18% of the company's total voting capital to 6.38% as of earlier in 2024.

Founded in 1985, Vishal Fabrics Ltd specializes in the dyeing, printing, and processing of various fabrics, including denim, cotton blends, and custom textiles. The company is one of the largest suppliers of stretch denim in India, offering an extensive array of finishes, weaves, and colours to global and domestic fashion brands. Located in Ahmedabad, Gujarat, Vishal Fabrics has large production facilities and has earned a reputation for innovation, quality, and sustainability in the textile industry. The company currently has a market cap of more than Rs 500 crore.

By increasing its stake in Nandan Industries, Vishal Fabrics is positioning itself to be a leader in the Indian textile and apparel manufacturing industry while expanding operations.