Texel Industries to raise ₹12.49 cr from rights issue

Our Bureau Ahmedabad | Updated on September 03, 2021

To fund expansion project at Kheda facility in Gujarat

Geosynthetic textile products maker, Texel Industries is looking to raise up to ₹12.49 crore from its rights issue. The issue which opened for subscription on August 31 will close on September 14. The company plans to issue up to 31,22,398 partly paid-up equity shares of face value of ₹10 each at an issue price of ₹40 per equity share.

The rights entitlement ratio for the proposed rights issue is 55:92 rights equity shares of ₹10 each for every 92 equity shares of ₹10 each held by the equity shareholders. The record date was fixed at August 17, 2021. On Friday, company’s shares closed at ₹68.45 on BSE.

Expansion plans

Texel Industries looks to utilise the proceeds of the rights issue to fund the proposed expansion in Kheda facility. The expansion of the 10,080 tonnes of geosynthetics products at Kheda, Gujarat is being done at the cost of ₹29.92 crore and is set to be commissioned by end of September, the company informed.

Of the planned ₹29.92 crore for the expansion, the company has already deployed ₹14.73 crore from internal accruals and borrowings. “Post completion of the expansion, installed capacity of the company will double to more than 19,000 MT per annum,” it said. Company has an existing manufacturing facility at Santej, Gandhinagar with installed capacity of 9,000 MT per annum.

Shailesh Mehta, Managing Director, Texel Industries Ltd said, “Texel is now expanding its product mix to include various new products such as roof tile underlay, lumber wrap, and a floating cover for water reservoirs. The floating cover is a cover for farm ponds and water reservoirs, which prevents 30 per cent loss of water through evaporation.”

Company profile

Established in 1989, Texel Industries Ltd makes tarpaulins and geomembranes. The company manufactures a wide range of geosynthetic textile products which includes tarpaulins, geomembranes, vermibed, geotank, geotube, grow bags azollabed, and waterproof membrane.

The products have applications in agriculture, aquaculture, horticulture, animal husbandry, civil engineering, water harvesting, disaster relief, transportation among others.

Company got itself deregistered from BIFR in November 2016 after financial turnaround. Promoters holding in the company stands at 40.77 per cent as on June 2021.

For the fiscal 2020-21, company had reported sales of ₹82.79 crore and net profit of ₹2.13 crore. For the first quarter of the current fiscal, April-June, 2021, the company’s net sales stood at ₹27.74 crore with 70 per cent year-on-year jump in net profits at ₹75 lakh.

Published on September 03, 2021

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