The Rights issue of Asian Granito India Limited (AGL) is open for subscription for its shareholders. The issue opened today, April 25 and will close on May 10. The company is planning to raise ₹441 crore through this.

It will issue up to 6,99,93,682 fully paid-up equity shares for cash at a price of ₹63 per share (including a premium of ₹53 per share) aggregating ₹440.96 crore on a rights basis to eligible equity shareholders in the ratio of 37:30 (37 equity shares for every 30 equity shares fully paid-up equity share held by the eligible equity shareholders). 

Equity Shares under the Rights Issue are offered at a price of ₹63 per share i.e. 24 per cent discount to the closing share price of  ₹82.9 per share on April 22, 2022 on NSE. Trading of the Rights Entitlements allotted to eligible shareholders is available on BSE and NSE between April 25 to May 5 (for online) and May 10 (offline), the company said.

It had fixed April 12, 2022 as the record date for the purpose of determining equity shareholders entitled to receive the rights entitlement in the rights issue. 

Three new facilities

“Proceeds of the Rights issue will be utilised to set up three new state-of-the-art manufacturing facilities at Morbi, Gujarat in value-added luxury surfaces & bathware segments including GVT tiles, sanitaryware and SPC flooring, setting up one of India’s largest display centre, funding the working capital requirements of the above new projects and general corporate purposes,” the company has said.

The Promoter & Promoter Group shareholders have confirmed their participation of up to 28.99 per cent shareholding (i.e. up to 100 per cent of their current shareholding) amounting to ₹128 crore. 

“Promoter and Promoter Group shareholders have also indicated that in case the Issue is undersubscribed, they reserve the right to subscribe to part or the whole amount of the unsubscribed portion, subject to applicable laws,” it said.

Post the completion of the Issue, the total outstanding shares of the company would increase from 5,67,51,634 shares on March 31, 2022 to 12,67,45,316 shares. Pantomath Capital Advisors Pvt Ltd is the sole lead manager for the rights issue. 

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