Vardhman Polytex to Raise Funds Via Rights Issue

Vardhman Polytex Ltd. has announced plans to raise ₹120 crore through a rights issue of equity shares. The initiative will allow eligible shareholders to subscribe to additional shares, reinforcing the company’s capital structure. The exact terms, including the record date and allocation ratio, are yet to be finalized and announced.

In addition to the rights issue, the textile company will issue convertible warrants worth ₹90.9 crore on a preferential basis. Each warrant, priced at ₹12.55, will be convertible into equity shares within 18 months. Holders must pay 25% of the warrant price upfront, with the remainder payable upon conversion. These warrants are primarily targeted at entities within the promoter group, as per regulatory disclosures.

Company Performance 

The announcement comes at a time when Vardhman Polytex had mixed financial results. The company’s standalone net sales for the September quarter of FY 2024-25 saw a decline of 35.99%, dropping to ₹64.40 crore from ₹100.60 crore in the same period last year. Despite weaker revenue, the company reported a turnaround in profitability, with net profit rising to ₹0.63 crore from a loss of ₹34.07 crore last year. EBITDA also improved, climbing 130.08% to ₹5.55 crore.

Market Reaction

As of 11:10 AM, shares of Vardhman Polytex Ltd recorded a 4.93% rise in trade, trading at ₹13.61 per share. The stock has exhibited long-term performance, with a year-to-date gain of 134.25%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.