Asian Granito India Limited (AGL) today announced that its Rights Issue of Rs. 441 crores, largest ever by any Ceramic Company in India, achieved successful closure, receiving overwhelming response from the shareholders and investors despite challenging times. The public portion of the Rights Issue was subscribed more than 1.38 times receiving bids for 6.87 crore shares or Rs. 432 crores of bids received. On an overall basis, the Company received bids for over 8.89 crore shares or Rs. 561 crores of bids in the Rights Issue on the closing date (May 10) against 6.99 crore shares or Rs. 441 crores offered, representing more than 127% subscription.
The allotment of equity shares will take place on or about 19th May, 2022. The Rights shares are expected to be listed on the BSE and NSE on or around 24th May, 2022.
Equity shares in the Rights Issue were offered at a price of Rs. 63 per share. The Rights Entitlement Ratio for the Rights Issue was 37:30 (37 Rights Equity Shares of Rs. 10 each for every 30 equity shares of Rs. 10 each held by the equity shareholders on the record date). The Rights Issue of the Company was open for subscription from April 25, 2022 till May 10, 2022. The proceeds of the Rights Issue would be utilised to fund the Strategic Mega Expansion Plans in Value Added Luxury Surfaces & Bathware Segments including GVT Tiles, Sanitaryware and SPC Flooring etc. and to fund various strategic initiatives.
The Company had launched a highly innovative campaign to create awareness about the Rights Issue, using broad-based and multiple means of communication. These included television, print, digital and social media, emails and SMSs to reach out to the shareholders. The Rights Entitlement (RE) was actively traded in demat form on the stock exchanges since SEBI introduced this platform and it was a resounding success reflecting broad-based interest in the Rights Issue.
Commenting on the success of the Rights Issue, Shri Kamlesh Patel, Chairman and Managing Director, Asian Granito India Ltd said, "I express my gratitude and sincere thanks to our dear and esteemed shareholders and investors for their support and participation in the Rights Issue. With all your support in these challenging times, the Rights Issue witnessed subscription of more than 1.27 times. We are delighted and humbled by their extraordinary show of confidence in the future of AGL.
Shri Patel added, "Our Industry is witnessing tremendous growth in both domestic and exports markets and has grown at the highest pace globally in past five years, thanks to the growing demand for the value added surfaces and bathware, favourable government initiatives and policies and big push to housing and infra. Company's Enhanced Strategic Integration Programme (ESIP) is targeted to expand the margins and place the Company further up in the league table of Luxury Surfaces and Bathware Solutions Players and this Rights Issue is a Mega Step towards the vision to achieve Rs. 6,000 crores in topline in medium to long term."
The Promoter & Promoter Group shareholders of AGL had participated in the Rights Issue for their full entitlement of 28.99% shareholding in the Company. Post completion of the Rights Issue, total outstanding equity shares of the Company would increase to 12,67,45,316 from 5,67,51,634 equity shares as on March 31, 2022.
Pantomath Capital Advisors Private Limited acted as the Sole Lead Manager to this Rights Issue.
The Net Proceeds of the Rights Issue would be utilised for expansion projects. Additionally, the Company also proposes to deploy the proceeds of the Rights Issue for General Corporate Purposes including funding other strategic initiatives, debt reduction in group, brand building and strengthening, marketing activities, and ongoing general corporate exigencies.
Shares of Asian Granito India Limited was last trading in BSE at Rs. 81.50 as compared to the previous close of Rs. 76.25. The total number of shares traded during the day was 504148 in over 5892 trades.
The stock hit an intraday high of Rs. 86.35 and intraday low of 73.65. The net turnover during the day was Rs. 40830140.00.