Asian Granito India Ltd to raise Rs. 90 crore through preferential warrants issue
Deepthi | Myequity news | Date : 13-03-2019 13:25:00 IST
Asian Granito India Limited (AGIL), one of India's leading tile company is planning to issue 50 lakh convertible warrants on preferential basis to promoter & non promoter group at Rs. 180 per share. Company is expected to raise Rs. 90 crore through the warrants issue and proceeds wm be utilise to fund its expansion plans, debt reduction, meet working capital requirement and improve capital structure. Company expects to receive the first installment of 25% of issue proceeds - Rs. 22.5 crore by end of April 2019 post approval in the EGM.
The 50 lakh warrants to be issued to promoter and non promoter group in the equal proportion. Promoter Group including Mr. Kamlesh Patel, Mr. Mukesh Patel and Mr. Suresh Patel will be allotted in total 25 lakh fully convertible warrants and the rest to the non- promoter group. The warrant holders shall be entitled to convert the warrants Into equal number of equity shares of face value of Rs 10/- each, on receipt of entire amount in one or more tranches, within a period of 18 months from the date of the allotment.
Mr Kamlesh Patel, CMO, Asian Granito India ltd said, "Our transformation journey is a result of our continuous investments in Technology, R&D, Brand building and Quality enhancement for the next phase of growth we focus on, Asset light and Capital light business model, becoming strong retail brand in the domestic as well as exports market and achieve leadership position in key business segments. We focused to increase sales from high value products such as big slab tiles, Marble and Quartz. Proceeds of the warrants issue will be utilised to meet our future roadmap including funding for our expansion plans in Marble & Quartz, Sanitary ware, reduce debt, meet working capital requirement, Nano quartz marble and improve our capital structure."
Promoter group holds 32.73% in the company which is expected to increase to around 35% post the warrants conversion. Institutions including Mutual funds and Foreign Portfolio investors hold 8.16% in the company.
About Asian Granito India limited:
Established in the year 2000, the Asian Granito India ltd. (AGIL) has emerged as India's leading home decor brand. Company manufactures and markets wide range of Tiles, Engineered Marble and Quartz.