Vipul Organics Share Price Gain 4% After Successful Rights Issue

Vipul Organics’ shares rose nearly 4% on April 3, 2025, reaching an intraday high of ₹141.50 on the BSE. This rise came even as the broader market remained weak.

Rights Issue Oversubscribed by 80%

The company’s stock gained momentum after it announced the successful closure of its rights issue, which was open from March 21 to April 2, 2025. The issue was oversubscribed by 80%, receiving applications for 7.98 million shares against the 4.43 million shares offered. At a price of ₹46 per share, the company raised ₹20.41 crore, but demand pushed the total applications to ₹36.7 crore.

Vipul Organics’ Managing Director, Vipul P Shah, expressed gratitude for the strong investor response. He stated that despite market uncertainties, shareholder confidence in the company’s future remains strong. The funds raised will be used for the company’s new Sayakha facility, which is a greenfield project.

Stock Performance and Market Capitalisation

As of April 3, 2025, Vipul Organics had a market capitalisation of ₹251.06 crore. However, the stock has seen significant declines, falling over 44% in the last six months and about 7% in the past year.

About Vipul Organics

Vipul Organics is a speciality chemicals company focused on pigments and dyes. It is among the leading manufacturers of pigments, dyestuffs, lake colours, and pigment intermediates in India. The company has 3 manufacturing plants in Maharashtra and exports its products to over 50 countries.

Financial Performance

In Q3 FY25 (December 2024 quarter), Vipul Organics posted revenue of ₹41.54 crore and a net profit of ₹1.45 crore. For the full FY24, its revenue was ₹150.99 crore, with a net profit of ₹3.34 crore.

Conclusion

Despite recent stock declines, the oversubscription of Vipul Organics’ rights issue highlights strong investor trust. The company aims to use the funds to expand its operations.

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