HOME > BUSINESS > Nandan Denim to issue 50 lakh warrants at Rs 200 each

Nandan Denim to issue 50 lakh warrants at Rs 200 each

nandan-denim

Nandan Denim Limited (NDL), a Gujarat- based fabric manufacturer, said it is planning to issue 50 lakh convertible warrants to foreign investors at Rs 200 each, aggregating to Rs 100 cr.

“The company will be issuing 25 lakh fully convertible warrants each to Foreign Portfolio Investors, LTS Investment Fund Ltd and LGOF Global Opportunities Ltd at Rs 200 each,” said the denim company.

LTS Investment Fund Ltd currently holds 11.64 lakh shares (2.42%) which post issue will increase to 36.64 lakh shares (6.91%).

This warrants include a premium of Rs 190 and will be the second warrant issue by Nandan Denim Ltd.

The conversion price of Rs 200 per share represents premium of over 57% to current share price of Rs 127.05 per share as of September 27.

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.

The money will be used to fund its growth plans, investment in proposed subsidiary/ies, meet long term working capital requirement and improve capital structure.

“The proceeds will be utilised to augment the Net Worth and the capital base of the company required for its business growth, to infuse the funds to the existing or proposed subsidiaries, to meet the long term working capital requirement of the Company and to improve the capital structure of the Company and for general corporate purposes,” said Deepak Chiripal, CEO, Nandan Denim Ltd.

Headquartered in Ahmedabad, Gujarat, NDL has expanded its capacity from 6 MMPA to 110 MMPA over last 12 years.

The company has a capacity expansion plan to strengthen its domestic market share, expand its exports business and have an increased focus on value-added segments.

Post expansion, NDL will become the largest denim manufacturer in Asia and the fourth largest in the World.

In September 2015, Company had issued 25 lakh convertible warrants to FII namely Polus Global Fund which has been converted in to equity shares at Rs 200 per share upon receipt of Rs 50 crore towards the consideration.

As of June 2016, FII & FP held 11.02% in the company while promoter group holding is 58.27%. Post issue of the 50 lakh warrant, holding of FII & FPIs will increase to 19.70% and promoter holding will come down at 52.78%.

Also considering the continuous increase in the holding of FIIs/FPIs and various advantages in attracting institutional investors, company has proposed to increase the aggregate limit for holding shares by the FIIs/FPIs to 49% from 24%.

For FY 2015-16, Nandan Denim Ltd posted net profit of Rs. 63.32 crore on net sales of Rs.
1156.72 Crore.

Nandan Denim Limited (NDL), started in 2004, is a part of conglomerate, Chiripal Group, established in 1972 and is currently diversified across several businesses like Textiles, Chemicals, Packaging, Infrastructure and
Education.

Headquartered in Ahmedabad, Gujarat, NDL has expanded its capacity from 6 MMPA to the intended capacity of 110 MMPA over the period of last 12 years.

The Company has a manufacturing facility unit near Ahmedabad, Gujarat and exports its denim fabric to over 27 countries.

The company has 3,000 employees.

For the year ended March 2016, company posted net sales of Rs. 1156.72 crore and net profit of Rs. 63.32 crore.

Follow ULTRA.news
IndusInd Bank takes $500 mln overseas term loan IndusInd Bank raises $500 mln Indusind Bank, part of the Hinduja group, said it has raised $500 mln (about Rs 3,300 cr) by way of syndicated term loans from a group of overseas lenders. The tenor of the facility is 3 years and will be used for general banking purposes, it ...
EU to invest Rs 1,300 cr in India’s solar and wind power via Yes Bank The European Investment Bank, the lending arm of the European Union, will invest $200 mln (Rs 1,283 cr) into the Indian solar and power sector via a deal with Yes Bank in order to support the growth of renewable energy in the country. The investment will be routed through a r...
TT to set up mega garment plant in UP to move from textiles to garments TT Ltd said it has decided to set up a mega garment plant in place of Spinning Machinery at Gajroula in Uttar Pradesh. The move is part of its attempt to diversify from textile making to making garments. "TT is exiting from spinning and entering the garmenting and fabric b...
ICICI Bank raises $500 mln via Dubai bonds ICICI Bank said it raised international debt $500 mln at an interest cost of 3.8%. "The notes carry a coupon of 3.80% and were offered at an issue price of 99.728," India's second biggest private sector bank said. The sale of the 10-year bonds was done through its DIFC br...
Rupa underwear brings ‘Fruit of the Loom’ to India Rupa & Company, one of India's largest knitwear manufacturers, said it is launching 'Fruit of the Loom' underwear brand in India. Fruit of the Loom, based in Kentucky, is one of the largest manufacturers and marketers underwear, T-shirts and fleece in the world. The com...
Yes Bank raises Rs 2,600 cr from banks in Japan, Taiwan India's fifth largest private sector bank Yes Bank said it is raising $400 Mn -- about Rs 2,600 cr -- through two five-year syndicated loans from banks in Taiwan and Japan. It will raise $250 Mn from Taiwanese banks and 16.5 Bn Yen -- about $150 Mn -- from Japan. "YES BANK ...
Ruchi Soya Industries sold to Devonshire Capital Ruchi Soya Industries said global private equity player Devonshire Capital will buy 51% of the company and 100% of certain of its 'branded packaged oils distribution business'. The money will be substantially utilized for payment to all lenders over a period of time, it said. ...
SIDBI and AU SFB to jointly lend to small businesses AU Small Finance Bank and Small Industries Development Bank of India (SIDBI) entered into an agreement to jointly lend to small businesses. Both will earmark a corpus of Rs 100 crore for lending under the ‘AU SIDBI Joint Financing Programme’ for FY18. The program will targ...
Mahindra Financial Services to raise 2,250 cr via share sale Mahindra and Mahindra Financial Services said the company board has approved a proposal to raise up to Rs 2,250 cr by selling shares or instruments convertible to shares. It said a Securities Issue Committee has been set up to undertake decisions in relation to the proposed i...
India sees record-breaking Private Equity inflows in 2017 – Study The amount of money invested or committed by private equity firms in India reached an all time high in the first nine months of this year, said Venture Intelligence, a research firm tracking unlisted company financials, transactions and valuations. PE firms invested about $17...
Vivimed pharma unit gets Rs 270 cr investment from OrbiMed fund Pharmaceuticals and specialty chemicals maker Vivimed Labs said investment firm OrbiMed will invest $42.5 mn (Rs 270 cr) into its active pharmaceutical ingredients business. The investment will be into Vivimed Labs Mascarene Ltd, which is in turn the holding entity of the com...
InterGlobe Aviation to raise Rs 2,530 cr by selling shares to institutions InterGlobe Aviation, the company that operates the country's largest airline Indigo said the company would raise Rs 2,530 cr by issuing fresh shares. At the same time, existing shareholders of the company would raise Rs 1,265 cr by selling some of their shares as well, the co...
Garment exporters seek better ‘zero rating’ under GST Representatives of apparel exports met commerce minister Suresh Prabhu and sought certain changes in the tax reimbursement scheme under the current Goods and Services Tax regime. Apparel exporters are eligible for reimbursement of various state and central taxes under two sch...
BSNL to form tower co, but will it sell stake? The Union Cabinet today gave its approval for hiving off mobile tower assets of Bharat Sanchar Nigam Limited into a separate company owned by BSNL. While the move, is not of that big a significance in itself, it is crucial from the perspective of what could come next. It is...
NDTV stock up 76% in four days, company says no clue why Shares of New Delhi Television Ltd spiked another 10% today to Rs 62.40, prompting the BSE to write to the company to seek clarification on any undisclosed development. With this, the total gain in NDTV shares in the last four days is 76%. The company, however, said it was...
Wipro announces details of its Rs 11,000 cr share buyback Wipro has announced details of its buy back of up to 343.8 mln shares or about 7.06% of its total equity base at a price of Rs 320 each for up to Rs 11,000 cr. The Buyback Size is 23.15% of the fully paid-up Equity Share capital and free reserves as per the audited standalone ...
Moody’s downgrades IDBI Bank over lower govt support Moody's Investors Service has downgraded debt issued by IDBI Bank over concerns on "reduction in the amount of extraordinary government support incorporated into the bank's ratings and its weak standalone credit profile," the bank said. While earlier, Moody's used to assume t...
Oriental Bank of Commerce to raise Rs 500 cr via bonds State-owned Oriental Bank of Commerce said it intends to raise Rs 500 cr by selling bonds. "The Bank intends to raise Tier 1 Capital through Private Placement of Basel III Compliant Additional Tier 1 Bonds of Rs.10,00,000 each at par aggregating to Rs.500 crore with an option ...
Indigo targets 20% growth every year; move towards owned aircraft IndiGo Airlines, India's largest airline by far, is in no mood to go easy on its rapid expansion in coming years, the company said. The company, which accounted for 85% of the total capacity added in the country in the last five years and grew its seats at 24% per year on aver...
Minda Corp raises Rs 25 cr via commercial paper Auto ancillary company Minda Corp said it had raised Rs 25 cr by issuing commercial paper. Commercial paper refers to unsecured, short-term promissory notes or debt issued by a company. These paper usually mature in a few weeks or months and are used for working capital an...