Shares of Vishal Fabrics Ltd rose to the 5% upper circuit of Rs 32.97 up from the closing price of Rs 31.42 from the previous day. Vishal stocks have impressively risen by 93.6 % from the base on the 52-week low of Rs 17.20 per share.

Recently, the Board of Directors approved a green shoe option for processing investors by issuing to public non-promoter 5 crore compulsorily convertible equity warrants (Warrants) on a preferential basis. They are priced at Rs 30.60, A Warrant is for 1 Warrant which is In this case convertible at a rate of Rs 5 per Warrant into One Equity Share thereby raising about an average of Rs 153 crores for the Company. In this allotment, Agencies like Silver Stallion Limited were allocated 1.50 crore (Booked Warrants), Vikasa India EIF I Fund 1 crore (Warrants), North Star Opportunities Fund 75 lakh (Warrants), Eminence Global Fund PCC – Eubilia Capital Partners Fund I 75 lakh (Warrants), Nexpact 50 lakh (Warrants), AG Dynamic Funds Limited 50 (Warrants) also have winded up.

In its meeting held recently besides the Warrant issuance, the Board of Vishal Fabrics has also sanctioned the raising of up to Rs 100 crore through Qualified Institutions Placement of equity shares of Rs 5 each. QIP, subject to shareholder and regulatory approvals, should help enhance the company’s current robust financial position further. Thereby leading to a change in the shareholding pattern of the company post conversion of the Warrants and completion of the QIP.

The company has also reported good business performance for the first quarter of 2024. Standalone net sales of Vishal fabrics stood at 339.92 crores in June 2024, a 3.57 per cent increase from net sales of rupees 328.2 crores a year ago in June 2023. In addition, the net profit of the company more than doubled in June 2024, growing 106.1 per cent to Rs 4.78 crores from Rs. 2.32 crores a year ago. Consolidated EBITDA rose sharply by 28.26%, moving from Rs 20.81 crore to Rs 26.69 crore in line with the figures posted last year, quarter on quarter. Earnings per share (EPS) did better as well, coming in at Rs 0.24 up from Rs 0.12 in June 2023.

Vishal Fabrics Ltd is one of the three companies in India with a Mothercare franchise, was established in 1985 and is engaged in the textile business in Ahmedabad in Gujarat, the Chiripal group. The company engages in designing, manufacturing and selling varied fabric products such as dyed yarn, denim, and other fabric and textile goods. Vishal Fabrics has developed a reputation for the quality of its fabrics as well as sustain­ability, especially its dyeing, printing and processing of denim fabrics. Armed with diverse production capabilities from several plants, the company has various internationally renowned fashion brands as its customers. Also, Vishal Fabrics is known as one of the top stretch denim suppliers and provides various compositions of stretchable denim with a number of finishes and weaves.

Story first published: Friday, September 27, 2024, 16:02 [IST]