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 Date30 December 2022
Credit of Rights Entitlements17 January 2023
Bid/Offer Opens On18 January 2023
Renunciation of Rights Entitlements02 February 2023
Bid/Offer Closes On07 February 2023
Deemed Date of Allotment16 February 2023
Credit Date20 February 2023
Listing Date23 February 2023

Rajapalayam Mills Rights Issue Details

Issue OpenJan 18, 2023 – Feb 7, 2023
Security NameRajapalayam Mills Limited
Issue Size (Shares)614,680
Issue Size (Amount)₹34.98 Crores
Issue Price₹569 per share
Face Value₹10 per share
Listing AtBSE
Terms of PaymentThe full amount of the Issue Price Rs 569/- will be payable on application.
Entitlement1 Rights Equity Share for every 14 Fully Paid-up equity shares held on the Record Date

Company Financials

Period EndedTotal AssetsTotal RevenueProfit After Tax
(Amount in ₹ Crore)

Rights Issue Lead Manager(s)

  • Vivro Financial Services Private Limited

Rajapalayam Mills Rights Issue Registrar

Cameo Corporate Services Limited
Phone: +91-44-28460390
Email: priya@cameoindia.com

Company Contact Information

Rajapalayam Mills Limited
Rajapalayam Mills Premises, Post Box No. 1,
P.A.C. Ramaswamy Road,
Rajapalayam – 626117
Phone: +91-4563-235666
Email: rajacot@ramcotex.com

Final Thoughts

Applying for the rights issue is purely a personal choice. make sure you make a detailed study about the company and rights issue before you make an investment decision.

Happy investing

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