Sadhana Nitrochem Rights Issue will open for subscription from 20 September 2024. the company aims for an issue size of ₹49.91 Crores through this rights Issue.
About the company
Sadhana Nitro Chem specializes in manufacturing chemical intermediates, heavy organic chemicals, performance chemicals, and wireless network equipment and services. The company’s product range includes 12 chemical intermediates such as Nitrobenzene, Meta Amino Phenol, Metanilic Acid, Aniline Oil, Ortho Aminophenol, Para Amino Phenol, Ammonium Sulfate, Diethyl Keto Acid, Aniline 2,5 Disulphonic Acid, and ODB2. These chemicals are widely used in industries like agrochemicals, aramid fibers, pharmaceuticals, developers, hair colors, dyes, specialized resins, and performance chemicals.
The company plans to increase its PAP plant capacity from the current 3,000 TPA to 36,000 TPA. Additionally, the capacity of its ODB2 plant has been expanded from 550 TPA in FY 2021 to 2,400 TPA in FY 2023. The company plans to establish a green hydrogen facility powered by a solar plant and wind farm with a capacity of 15 MW to 20 MW for its own use. Any surplus green hydrogen produced will be made available for sale to external customers.
Objectives of the Issue
- Financing the acquisition of a 126-acre plot of land.
- Issue related expenses
Sadhana Nitrochem Rights Issue Timetable
| Rights Issue Approval Date | 6 September 2024 |
| Rights Issue Record Date | 13 September 2024 |
| Credit of Rights Entitlement | 18 September 2024 |
| Rights Issue Opening Date | 20 September 2024 |
| Last Date for Market Renunciation | 25 September 2024 |
| Rights Issue Closing Date | 1 October 2024 |
| Finalization of Basis of Allotment | 10 October 2024 |
| Rights Allotment Date | 11 October 2024 |
| Credit Date | 14 October 2024 |
| Listing Date | 15 October 2024 |
Sadhana Nitrochem Rights Issue Details
| Issue Open | September 20, 2024 – October 4, 2024 |
| Security Name | Sadhana Nitrochem Limited |
| Issue Size (Shares) | 82,352,818 |
| Issue Size (Amount) | ₹49.91 Crores |
| Issue Price | ₹6.06 per share |
| Face Value | ₹1 per share |
| Listing At | BSE, NSE |
| Terms of Payment | The entire amount of Rs 6.06 (including a premium of Rs 5.06) is payable at the time of application |
| Entitlement | 1 Rights Equity Share(s) for every 3 fully paid-up Equity Shares held on Record Date |
Sadhana Nitrochem Rights Issue Calculation
| Sadhana Nitrochem Rights Issue Price | ₹ 6.06 per share |
| Market Price on Rights Issue Approval | ₹ 72.59 per share |
| Dilution Factor (X) | 1.33 |
| Fair Value After Dilution at Prevailing Price | ₹ 55.96 per share |
Company Financials
| FY 2022 | FY 2023 | FY 2024 | |
| Revenue | 120.74 | 145.85 | 188.86 |
| Expenses | 111.45 | 132.90 | 161.83 |
| OPM (%) | 15.53 | 16.74 | 25.57 |
| Net income | 5.79 | 4.59 | 7.41 |
| ROCE (%) | 6.0 | 5.0 | 7.0 |
Sadhana Nitrochem Rights Issue Documents
- Sadhana Nitrochem Rights Issue Application Form
- Sadhana Nitrochem Letter of Offer
- Board Meeting Outcome
Lead Manager(s)
Sadhana Nitrochem Registrar
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park L.B.S. Marg,
Vikhroli West, Mumbai – 400 083, Maharashtra
Telephone: +91 810 8114949
Email: sadhananitro.rights2024@linkintime.co.in
Website: www.linkintime.co.in
Company Contact Information
SADHANA NITRO CHEM LIMITED
Hira Bagh, First Floor Kasturba
Chawk (C.P. Tank) Mumbai- 400004
Phone: 912268663300
E-mail: sadhananitro@sncl.com
Website: www.sncl.com
Final Thoughts
Applying for the rights issue is purely a personal choice. Make sure you conduct a detailed study of the company and its rights issues before you make an investment decision.
Happy investing
