Textile Stock Below Rs 50 In Green After Mauritius-based Investment Entity Acquires 3.33% Stake

Well-known denim fabric manufacturer based at Ahmedabad, Vishal Fabrics Ltd, flagship company of the Chiripal Group, stated that it is allotted 75,00,000 equity shares to North Star Opportunities Fund-VCC Bull Value Incorporated VCC Sub-Fund. The Rs 5 face value share was allotted at a premium of Rs 30.60 a share on full conversion of preferential allotment of warrants. With this allocation, the company has garnered Rs 17.21 crore, representing 75% of the issue price in accordance with SEBI (ICDR) Regulations, 2018. The first installment of 25% was paid when the warrants were allotted, at Rs 7.65 per warrant.

Following this latest round of equity infusion, Vishal Fabrics' total paid-up capital stands at Rs 112.55 crore, now consisting of 22,51,10,003 equity shares of Rs 5 each. The newly allotted shares will be pari passu with the existing equity share capital. Also, the firm continues to hold 2.25 crore outstanding warrants, convertible into shares at the end of 18 months from the date of allotment on payment of the balance 75 per cent of the issue price by the warrant holders.

This deal comes on the heels of Vishal Fabrics' earlier strategic fundraise where 80,67,176 equity shares were allotted to Elysian Wealth Fund, an institutional investor based out of Mauritius and previously known as Silver Stallion Limited. The shares were equally allotted at Rs 30.60 a share on the conversion of warrants and generated Rs 18.51 crore to the company as the last tranche of the issue price.

At market capitalisation of more than Rs 750 crore, Vishal Fabrics has proved a good bet in stocks, having rallied by 80% from its 52-week low share price of Rs 21.05. Its shareholding is very strong in terms of promoter holding as promoters are holding 65.07%. 8.72% stake is owned by Foreign Institutional Investors (FIIs), and the balance 26.21% is held by the public.

Vishal Fabrics is one of India's leading denim fabric producers, with a sophisticated installed capacity of more than 100 million meter per annum. Its vertical set-up and state of the art facilities has given it the competitive edge to become the number one in wide-width and high-volume denim production. Innovation and sustainability are at the heart of its business model, and sustainable practices such as water recycling, zero liquid discharge facilities and sustainable raw material sourcing underpin all its manufacturing. With heritage in fabric processing, dyeing and printing, the company now fuses international quality benchmarks with a purpose-centric approach to shape the future of sustainable fashion textiles.