Nandan Denim plans to raise Rs 100 crores through a warrants issue to foreign investors to fund its expansion. Apart from expansion, the funds will also be used for investment in proposed subsidiaries, meeting long-term working capital requirements and improving the capital structure. Nandan’s existing portfolio of investors are: LTS Investment Fund and LGOF Global Opportunities, will be investing. The company will be issuing 25 lakh warrants to them.
The company is planning to issue 50 lakh convertible warrants on a preferential basis to foreign investors at Rs 200 each including a premium of Rs 190. Ahmedabad-based Nandan Denim expanded its capacity from six million meters per annum to 110 million meters per annum over the last 12 years. The company, a fabric maker, is part of the diversified conglomerate Chiripal Group, which was established in 1972. The group is engaged in businesses including textiles, chemicals, packaging, infrastructure and education. Over the years, the magnitude of the operations of the company has increased manifold.
Nandan Denim’s revenue increased to Rs 300.50 crores in the quarter ended June 30 against Rs 280.51 crores in the same period last year. Its net profit rose marginally to Rs 15.97 crores in the last quarter from Rs 15.61 crores in the year-ago period.
