Rajapalayam Mills Rights Issue

Rajapalayam Mills Rights Issue will open for subscription from 18 January 2023. the company aims for an issue size of ₹34.98 Crores through this rights Issue.

Rajapalayam Mills Limited

The company is part of the South India-based Ramco Group, incorporated in 1936 and founded by P. A. C. Ramasamy Raja. The Company is engaged in the business of manufacturing cotton yarn ranging from 4s to 355s (single/double yarn) and fabrics. Presently, it has four manufacturing facilities for cotton yarn and one manufacturing facility for fabric.

The Company manufactures a wide range of products like Open End yarn, Ring yarn, Compact yarn, TFO yarn, Gassed yarn, Mercerised yarn, Slub yarn, Multi Count yarn, Melange yarn, Dyed High Twist yarn, Core Spun yarn, Eli twist yarn. Their products are tailor-made to cater to specific customer needs. They sell their products in domestic and international markets.

The Company is also engaged in the generation of electricity from windmills. It has an aggregate installed capacity of 35.15 megawatts (MW) of wind power facilities, which it uses for its captive consumption. This helps the Company to control its power costs.

Objectives of the Issue

Capital expenditure for enhancement of fabric division capacity comprises of (i) installation of additional 166 looms (“Looms Expansion”) and (ii) installation of fabric finishing infrastructure (“Fabric Processing”);
Capital expenditure for modernization of existing spinning capacity; and
Capital expenditure for setting up electrical infrastructure capacity to support existing and proposed infrastructure.

Rights Issue Timetable

Record Date	30 December 2022
Credit of Rights Entitlements	17 January 2023
Bid/Offer Opens On	18 January 2023
Renunciation of Rights Entitlements	02 February 2023
Bid/Offer Closes On	07 February 2023
Deemed Date of Allotment	16 February 2023
Credit Date	20 February 2023
Listing Date	23 February 2023