Vipul Organics, a specialty chemicals company, announced a rights issue on September 30, offering one share for every three shares held as of the record date, at an issue price of Rs 54 per share. The company aims to raise up to Rs 25 crore through this offering, with funds earmarked for the development of a new facility in Sayakha, Gujarat.
Vipul P Shah, Managing Director of Vipul Organics, stated, “We have undertaken substantial capacity expansion and decided to mobilise funds through a rights issue, offering a significant discount to the current market price to reward our shareholders and involve them in the company’s growth.”
The shares of Vipul Organics jumped 12 per cent on the announcement day and are up 50 per cent year-to-date. The company had recently added capacity at its Ambernath facility and is in discussions to set up a new greenfield facility in Sayakha.
The Indian dyes and pigments industry, in which Vipul Organics operates, represents nearly 25% of the global market and is expected to grow at an 11% CAGR between 2024 and 2032. It further added that the record date for a right issue will be declared later.
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Source: Moneycontrol
News Desk
