Nandan Denim sizzles on bourses

Nandan Denim climbs 15 per cent at Rs 146.30 per share at 1.40 pm on Wednesday. The stock climbed meteorically on intraday basis owing to the news of the issue of 50 lakh convertible warrants to foreign investors at Rs 200 each.

The company will raise almost Rs 100 crore from foreign investors through this option. 25 cr will be received upfront and the promoter holding will go down post the convertible warrants being issued. The funds will be used for working capital requirements and corporate actions.

Convertible warrants option is used by the company as it is an easier option. In a one year period the stock is up by almost 11 per cent. Over one month the stock is up by 17 per cent. BSE Sensex is trading at 28,313 up by almost 80 points on an intraday basis.