Rs 1 Dividend Ahead: 13/9 Record Date; Rushil Decor’s Stock Surges Following Preferential Issue

Rushil Decor Ltd saw its shares rise by 1.5% today, trading at Rs 37.01 per share, up from the previous closing price of Rs 36.58. The company's stock has shown resilience, with a 52-week high of Rs 45.45 and a 52-week low of Rs 27.01. This uptick comes in the wake of a key announcement regarding the allotment of equity shares on a preferential basis.

The company has disclosed that it recently allotted 41,30,000 convertible warrants to 38 allottees at an issue price of Rs 297 per warrant. Of this, Rs 30.66 crore, representing 25% of the issue price, has already been collected as the initial subscription at the time of allotment. As of now, 9,00,000 equity shares have been allotted by converting 9,00,000 warrants (pre-split) to 18 allottees, including both promoters and non-promoters. These equity shares were part of the total 41,30,000 convertible warrants issued on December 23, 2023.

On August 9, 2024, the company's equity shares underwent a stock split, with each Rs 10 share being subdivided into 10 shares of Rs 1 each. One non-promoter allottee has exercised their right to convert 5,00,000 warrants into 5,00,000 equity shares post-split, paying Rs 1.11 crore towards the 75% balance amount due. This move marks a significant milestone in Rushil Decor's fundraising efforts. Rushil Decor has also fixed 13th September as the record date for its upcoming dividend of Rs 1 per share.

The company's Fundraising Committee held a meeting on August 21, 2024, during which it approved the allotment of 9,00,000 equity shares at a face value of Rs 1 each, at a premium of Rs 28.70 per share. This allotment follows the conversion of 9,00,000 warrants into equity shares. Two key allottees, Wow Investments and Ten Eighty Investments, contributed a combined Rs 2.00 crore towards their subscription, representing the 75% balance due on their warrants. This follows the original issuance of 41,30,000 convertible warrants to 38 allottees on a preferential basis in December 2023.

The company has now allotted 8,10,000 equity shares to 16 allottees from the initial batch of convertible warrants. To complete the conversion process, allottees are required to pay the remaining 75% of the issue price. This development further strengthens Rushil Decor's capital structure as it continues its growth trajectory.

Rushil Decor also reported strong financial performance for Q1 FY25, with net sales rising by 16% to Rs 223.50 crore compared to the same quarter last year. Net profit inched up 1% to Rs 12.31 crore. The company's net debt to shareholder equity ratio stands at 0.45x, indicating a healthy balance sheet. Its earnings per share (EPS) for the period were Rs 4.61 (basic) and Rs 4.06 (diluted).

Founded in 1993, Rushil Decor is a leading player in the laminate and MDF panel board industry. Headquartered in Ahmedabad, the company specializes in eco-friendly, composite wood panels and modern interior infrastructure products. Rushil Decor's flagship brand, 'VIR', has a global presence, with products sold in over 50 countries.