Penny stock under Rs 35 from the textile sector to keep under the radar as FIIs bought 5,00,00,000 compulsorily convertible equity warrants
The stock is up by 93.6 per cent from its 52-week low of Rs 17.20 per share.
On Thursday, shares of Vishal Fabrics Ltd plunged 1.80 per cent to Rs 33.30 per share with an intraday high of Rs 34.45 and an intraday low of Rs 32.50 from its previous closing of Rs 33.90. The stock is up by 93.6 per cent from its 52-week low of Rs 17.20 per share.
The Fund-raising Committee of the Board of Directors of the Company, held on September 12, 2024, has approved the allotment of 5,00,00,000 Compulsorily Convertible Equity Warrants to persons belonging to “Non-Promoter, Public Category” on a preferential basis. The warrants carry a right exercisable by the warrant holder to subscribe to one equity share having a face value of Rs 5 per warrant, at an issue price of Rs 30.60 per warrant. The allotment is subject to the receipt of the stipulated amount i.e. 25 per cent of the Issue Price as a subscription amount aggregating to Rs 38,25,00,000 and the approval of the Stock Exchange.
Each of the Warrant, so allotted, is convertible into or exchangeable for one fully paid-up equity share having a face value of Rs 5 of the Company following the provisions of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, on payment of the balance consideration i.e. 75 per cent of the warrant issue price from the allottees within 18 months from the date of allotment of these warrants. Elysian Wealth Fund, Vikasa India EIF I Fund, North Star Opportunities Fund VCC-Bull Value Incorporated VCC SubFund, Eminence Global Fund PCC- Eubilia Capital Partners Fund I, Nexpact Limited and AG Dynamic Funds Limited were allocated a total of 5,00,00,000 warrants among them.
Vishal Fabrics Ltd, a textile company established in 1985 and part of the Ahmedabad-based Chiripal Group, manufactures and distributes a wide range of fabrics including dyed yarn, denim, and custom textile work. Certified for quality and sustainability, they specialize in dyeing, printing, and processing denim and other fabrics for both their collections and client-specific jobs.
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Their fabrics come in various compositions like 100 per cent cotton, cotton blends, and modal, and they are a leading supplier of stretch denim. With a focus on innovation, they offer diverse finishes, weaves, blends, and colours. Their extensive production capacity comes from multiple facilities in Ahmedabad, Gujarat, and they boast an impressive list of clientele including well-known international fashion brands. The company has a market cap of over Rs 650 crore.
According to Quarterly Results, the total income increased by 3.6 per cent to Rs 340.10 and net profit increased by 106 per cent to Rs 4.78 in Q1FY25 compared to Q1FY24. In its annual results, the company reported net sales of Rs 1,450 crore and net profit of Rs 21 crore in FY24. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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