Receives bids for 8.89 crore shares against 6.99 crore on offer
Asian Granito India Ltd (AGL)’s rights issue of ₹441 crore received an overwhelming response from shareholders and investors as it was over-subscribed by 1.27 times (127 per cent) and received bids for 8.89 crore shares for ₹561 crore on the closing date (May 10) against 6.99 crore shares for ₹441 crore on offer.
The public portion of the rights issue was subscribed by more than 1.38 times, receiving bids for 6.87 crore shares or ₹432 crore of bids received.
Equity shares in the rights issue were offered at a price of ₹63 per share. The rights entitlement ratio for the rights issue was 37:30 (37 rights equity shares of ₹10 each for every 30 equity shares of ₹10 each held by the equity shareholders on the record date).
The rights issue was open for subscription from April 25, 2022, till May 10, 2022. The allotment of equity shares will take place on or about May 19, 2022. The rights shares are to be listed on the BSE and NSE on or around May 24, 2022.
To fund strategic initiatives
The proceeds of the rights issue would be utilised to fund the strategic mega expansion plans in value-added luxury surfaces and bathware segments, including GVT Tiles, Sanitaryware and SPC Flooring etc. and to fund various strategic initiatives, a company statement said. The company also proposes to deploy the proceeds of the rights issue for general corporate purposes including funding other strategic initiatives, debt reduction in group, brand building and strengthening, marketing activities, and ongoing general corporate exigencies.
Kamlesh Patel, Chairman and Managing Director, Asian Granito India Ltd, said, “Our industryhas grown at the highest pace globally in the past five years, thanks to the growing demand for the value-added surfaces and bathware, favourable government initiatives and policies, and big push to housing and infra. This rights issue is a step towards the vision to achieve ₹6,000 crore in top-line in medium to long term.”
The promoter and promoter group shareholders of AGL had participated in the rights issue for their full entitlement of 28.99 per cent shareholding in the company. Post-completion of the rights issue, the total outstanding equity shares of the company would increase to 12,67,45,316 from 5,67,51,634 equity shares as on March 31, 2022.
Pantomath Capital Advisors Private Ltd acted as the sole lead manager to this rights issue.