Pursuant to applicable provisions and regulations, SVP Global Ventures Ltd, one of the largest compact cotton yarn manufacturers in the world has announced it's intention to issue upto 2,23,80,952 Convertible Equity Warrants to it's parent company, Shri Vallabh Pittie Ventures Private Pvt. Ltd. The aggregate value of the transaction will stand at -Rs. 235 Crs. for cash and the allotment of warrants will be completed within 15-day period from the date of shareholders approval.
The Warrant holder has the option to convert Equity warrants into equivalent number of fully paid up equity shares of face value of Rs.1/- each, in one or more tranches within 18 months from the date of allotment of warrant, at an issue price of Rs 105/- per Equity Share and is subject to interim adjustments by way of capitalisation of profits or reserves demerger, rights issue or any consolidation/reclassification activities.
On the announcement of the Preferential Issue of Equity Warrants, Mr Chirag Pittie, Director, SVP Global Ventures Ltd. stated "The Issue of Equity warrants and its conversion at 37% premium over current market price would help in strengthening the capital structure of the company. The company is committed to deliver long-term sustainable growth to its stakeholders by continuous reduction in overall debt and expansion in high-margin compact yarn business."
As on date, the Pre Issue Shareholding of the Promoter and Non Promoter stood at 68.71% and 31.29% respectively. Post issue the promoter and promoter group shareholding will be 73.41%. The stock opened at Rs 79.85 and closed at Rs 76.90 per share and witnessed a weekly delivery quantity of approx. 9.5L shares.
Recently, the company declared its Q3FY21 and 9 month ended results where it has reported a 210% increase in its QoQ Consolidated PAT and 55% increase in its EBIDTA QoQ ; resultant of better operational efficiencies, better product mix and cost rationalisation efforts.
Shares of SVP GLOBAL VENTURES LTD. was last trading in BSE at Rs.76.3 as compared to the previous close of Rs. 78.55. The total number of shares traded during the day was 99466 in over 792 trades.
The stock hit an intraday high of Rs. 81 and intraday low of 76.2. The net turnover during the day was Rs. 7793569.