Vipul Organics announces 1:3 rights issue at an issue price of Rs.54 per share

Vipul Organics Limited, the BSE listed (VIPULORG / 530627) leading Specialty Chemicals company in the pigments and dyes segment, today announced their rights issue, after the meeting of the Rights Issue Committee. Vipul Organics will offer 1 share for every 3 shares held on record date at a premium of Rs.44 for the share of face value Rs. 10 (total price Rs.54) The rights issue will not exceed the size of Rs. 25 Crore.

"The company has undertaken substantial capacity expansion and has decided to do a rights issue to mobilise funds. With a view to reward our shareholders and to include them in the growth of the company, the issue price is at a substantial discount to the current market price", says Mr. Vipul P Shah, Managing Director, Vipul Organics Limited.

The company is investing significantly on expansion of its capacity. It has just concluded its capacity expansion at its Ambernath facility. Construction is on full steam at its greenfield facility at Sayakha. The funds raised wil be utilized to ensure development of the Sayakha facility, and production will begin in a phased manner from the first quarter of 2025-2026.

Shares of Vipul Organics Ltd was last trading in BSE at Rs. 260.75 as compared to the previous close of Rs. 233.05. The total number of shares traded during the day was 114167 in over 924 trades.

The stock hit an intraday high of Rs. 263.95 and intraday low of 234.95. The net turnover during the day was Rs. 28897953.00.

Source : Equity Bulls

Keywords

VipulOrganics INE834D01018 SpecialtyChemicals FundRaising RightsIssue 1For3