Vardhman Polytex Rights Issue will open for subscription from 12 September. The company aims for an issue size of ₹49.84 Crores through this rights Issue.
About the company
Vardhman Polytex is the flagship company of Oswal Group which the Late Shri Rattan Chand Oswal founded. The group began its corporate journey with its flagship company, Vardhman Spinning & General Mill (VSGM), in Ludhiana. Vardhman Polytex was incorporated in 1981 and manufactures yarn and garments. It manufactures a range of Cotton Yarns (Carded, Combed, Organic, BCI), Cotton Polyester Yarns, and Value Added Yarns (Grey and Dyed) in variable counts. The company has entered into arrangements with a few vendors, from whom it purchases raw materials, processes them, and sells the finished output back to them.
The company’s manufacturing facilities are in Ludhiana, Bathinda, and Nalagarh (Himachal Pradesh) with a total installed capacity of ~1.95 lakh spindles. It also has a yarn dyeing unit in Ludhiana, with an installed capacity of ~15 tons per day. The company also has a small presence in garments, with an installed capacity of manufacturing ~7 lakh pieces per annum.
Objectives of the Issue
- To repay the debts of the Company;
- Modernization of Plants; and
- General corporate purposes.
Vardhman Polytex Rights Issue Timetable
| Rights Issue Approval Date | 22 August 2024 |
| Rights Issue Record Date | 28 August 2024 |
| Credit of Rights Entitlement | 11 September 2024 |
| Rights Issue Opening Date | 12 September 2024 |
| Last Date for Market Renunciation | 24 September 2024 |
| Rights Issue Closing Date | 27 September 2024 |
| Finalization of Basis of Allotment | 8 October 2024 |
| Rights Allotment Date | 8 October 2024 |
| Credit Date | 10 October 2024 |
| Listing Date | 11 October 2024 |
Vardhman Polytex Rights Issue Details
| Issue Open | September 12, 2024 – September 27, 2024 |
| Security Name | Vardhman Polytex Ltd. |
| Issue Size (Shares) | 83,059,434 |
| Issue Size (Amount) | ₹49.84 Crores |
| Issue Price | ₹6 per share |
| Face Value | ₹1 per share |
| Listing At | BSE, NSE |
| Terms of Payment | The entire amount of the Issue Price of Rs 6/- per Rights Equity Share shall be payable at the time of Application. |
| Entitlement | 7 Rights Equity Share(s) for every 23 fully paid-up Equity Shares held on Record Date |
Company Financials
| FY 2022 | FY 2023 | FY 2024 | |
| Revenue | 928.60 | 615.51 | 370.64 |
| Expenses | 933.58 | 607.98 | 415.89 |
| Operating Margin (%) | 6.70 | 10.90 | (3.49) |
| Net Income | (15.56) | 1.49 | (26.76) |
| ROCE (%) | 28 | (34) | – |
Rights Issue Documents
- Vardhman Polytex Rights Issue Application Form
- Vardhman Polytex Letter of Offer
- Board Meeting Outcome
Vardhman Polytex Rights Issue Lead Manager(s)
ARIHANT CAPITAL MARKETS LIMITED
1011, Solitaire Corporate Park, Guru Hargovindji Road,
Chakala, Andheri (E), Mumbai – 400 093
Phone: 022-42254800
Email: mbd@arihantcapital.com
Website: www.arihantcapital.com
Rights Issue Registrar
ALANKIT ASSIGNMENTS LIMITED
4E/21, Alankit House, Jhandewalan
Extension, New Delhi – 110055
Phone: +91-11- 42541234
E-mail: vplrights@alankit.com
Website: www.alankit.com
Company Contact Information
VARDHMAN POLYTEX LIMITED
Vardhman Park, Chandigarh Road,
Ludhiana, Punjab, India – 141123
Phone: 8054444284
Email: crm.dyed@vpl.in
Website: http://www.vardhmanpolytex.in
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
