Rights issue of Asian Granito India Limited (AGL), one of the largest Luxury Surfaces and Bathware Solutions brands in the country is open for subscription for its shareholders. The issue opens on April 25 and will close on May 10. Company is raising Rs. 441 crores through the rights issue to fund its Mega Expansion Plans Value Added Luxury Surfaces & Bathware Segments including GVT Tiles, Sanitaryware and SPC Flooring etc. Equity Shares under the Rights Issue are offered at a price of INR 63 per Share i.e. 24% discount to the closing share price of Rs. 82.9 per share on April 22, 2022 on NSE. Trading of the Rights Entitlements allotted to eligible shareholders is available on BSE and NSE between April 25 to May 5 (for online) and till May 10 (offline).
The Company will issue upto 6,99,93,682 fully paid-up Equity Shares of face value of INR 10 each for cash at a price of INR 63 per Equity Share (including a premium of INR 53 per Equity Share) aggregating INR 440.96 crore on a rights basis to eligible equity shareholders in the ratio of 37:30 (37 Equity Shares for every 30 Equity shares fully paid-up Equity Share held by the Eligible Equity Shareholders). Company had fixed April 12, 2022 as record date for the purpose of determining equity shareholders entitled to receive the rights entitlement in the rights issue. Last date for Onmarket Renunciation of Rights Entitlements is May 5, 2022.
Proceeds of the Rights issue will be utilised to set up three new state-of-the-art manufacturing facilities at Morbi, Gujarat in Value Added Luxury Surfaces & Bathware Segments including GVT Tiles, Sanitaryware and SPC Flooring, setting up one of the India's largest Display Centre, funding the working capital requirements of the above new projects and general corporate purposes.
The Promoter & Promoter Group shareholders have confirmed their participation of up to 28.99% shareholding (i.e. upto 100% of their current shareholding) amounting to Rs. 128 crores. Promoter and Promoter Group shareholders have also indicated that in case the Issue is undersubscribed, they reserve the right to subscribe to part or the whole amount of the unsubscribed portion, subject to applicable laws. Post completion of the Issue, total outstanding shares of the Company would increase to 12,67,45,316 equity shares from 5,67,51,634 equity shares as on March 31, 2022. Pantomath Capital Advisors Pvt. Ltd. is the sole lead managers to the rights issue.
Commenting on the development, Mr. Kamlesh Patel, Chairman and Managing Director, Asian Granito India Ltd said, "Morbi is India's hub for Ceramic Tiles & Sanitaryware and accounts for more than 80% of the country's total production, housing over 1,100 manufacturing units. AGL has lined up major expansion plans in Morbi region in the state of Gujarat, keeping in mind strategic locational advantages, proximity to the raw material sources, easy & quick availability of manpower, proximity to some of the country's largest ports, among others. With commercialisation of the proposed plans, AGL is expected to strengthen its position as an Integrated Luxury Surfaces and Bathware Solutions Brand and up the Group's margin profile in near to medium term."
Shares of Asian Granito India Limited was last trading in BSE at Rs. 82.75 as compared to the previous close of Rs. 83.05. The total number of shares traded during the day was 48146 in over 921 trades.
The stock hit an intraday high of Rs. 84.90 and intraday low of 82.30. The net turnover during the day was Rs. 4021238.00.