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Tiles maker, Asian Granito India Ltd (AGIL), on Wednesday announced its plans to issue 50 lakh convertible warrants on preferential basis to the promoter and non-promoter group at Rs 180 per share. The company is expected to raise Rs 90 crore, which will be utilised to fund its expansion plans, debt reduction, meet working capital requirements and improve capital structure.
The company expects to receive the first instalment of 25 per cent of the issue proceeds, or Rs 22.5 crore by the end of April 2019, post-approval at the Extraordinary General Meet (EGM) of the company.
The 50 lakh warrants are to be issued to the promoter and non-promoter group in equal proportion. The promoter group, including Kamlesh Patel, Mukesh Patel and Suresh Patel, will be allotted a total of 25 lakh fully convertible warrants, and the rest will be issued to the non-promoter group, the company said.
Currently, the promoter group holds 32.73 per cent equity stake in the company, which is expected to increase to around 35 per cent post the warrants conversion. Institutions, including mutual funds and foreign portfolio investors, hold another 8.16 per cent in the company.
The warrant holders would be entitled to convert the warrants into an equal number of equity shares of face value of Rs 10 each, on receipt of the entire amount in one or more tranches, within a period of 18 months from the date of allotment.
Kamlesh Patel, CMD of the company said, "For the next phase of growth we will focus on the asset light and capital light business model, becoming a strong retail brand in the domestic as well as exports market, so as to achieve a leadership position in key business segments... The proceeds of the warrant issue will be utilised to meet our future roadmap, including funding for our expansion plans in marble & quartz, sanitaryware, debt reduction, meeting working capital requirements, the nano quartz marble and to improve our capital structure."
The company’s shares gained over 6 per cent on Wednesday, to close at Rs 240 on the NSE.
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