Textile Stock In Focus As Anchor Investor Elysian Wealth Fund Acquires 3.31% Stake Through Warrant Conversion;

Vishal Fabrics Ltd (BSE: 538598), a Chiripal Group company and one of the prominent manufacturers and exporters in textiles, reported in the stock exchange on May 29, 2025, about the outcome of the Fund Raising Committee meeting of the Board of Directors. Elysian Wealth Fund, as a non-promoter public anchor investor, has already been allocated as of April 15, 2025, and this marks the issuance of warrants as stipulated under the company's plan disclosed earlier.

This is in regard to the offering of the 1.50 crore warrants to Elysian Wealth Fund (previously Silver Stallion LLimited), whichis classified as a Non-Promoter, Public Category investor. The company had earlier intimated this preferential issue on September 12, 2024. Each of the non-promoter public warrants will allow the holders to convert to shares at an exchange fee of Rs 30.60 nominal, being demanded against 5 nominal shares provided. The conversion was approved when payment of Rs 15.91 crore at Rs 22.95 per warrant, 75% of the issue price, was received in line with the direction of the issue.

To exercise the conversion rights, Elysian Wealth Fund paid 25% of the issue price, or Rs 7.65 per warrant, while they were being allotted. As per SEBI stipulations, the remaining 75% must be paid within 18 months to avail of them. With this payment, the investor has now exercised the conversion rights for a significant proportion of the warrants attached, from subdivisions of preferences and augmentations of shares to exclusive subscription of shares by a selected group of people. The infusion is intended to provide strategic support to business growth, deepen the company's capital structure, and consequently increase its savvy for financing.

Vishal Fabrics, a small-cap stock that is currently under Rs 50, saw its share price open at Rs 30 at the BSE on Friday. This is nearly unchanged from its previous close of Rs 30.04. During inter-day trading, the stock even managed to reach Rs 30.50, which represents a 1.5% increase in value, despite the benchmark Sensex trading at -0.25%.

Based on the company's audited financial results, Vishal Fabrics recorded net sales of Rs 1,520 crore for FY25, which is an increase of 5% year-on-year, while net profit increased by 14%, reaching Rs 24 crore. For the fourth quarter of FY25, the company reported net sales of Rs 391.46 crores with a net profit of Rs 4.88 crores.

Warrant creation is projected to improve the company's balance sheet and aid growth initiatives while enhancing investor sentiment towards Vishal Fabrics' long-term approach.

Headquartered in Ahmedabad, Gujarat, Vishal Fabrics Ltd was founded in 1985 and is a part of the Chiripal Group, one of India's largest textile conglomerates. The company is engaged in the manufacturing, dyeing, printing, and processing of denim and other fabrics. It offers 100% cotton, cotton blend, and modal fabrics for both domestic and overseas customers. The company operates from multiple production facilities across Gujarat and focuses on sustainable and creative approaches towards fabric design, finishes, and performance.