Gujarat-Based Textile Penny Stock Under Rs 30 In Green After Acquiring 5,28,100 Shares of Nandan Industries Pvt Ltd
The stock is up by 52 per cent from its 52-week low of Rs 18 per share.
On Monday, shares of Vishal Fabrics Ltd jumped 5.7 per cent to Rs 27.34 per share from its previous closing of Rs 25.86 per share. The stock’s 52-week high is Rs 42.88 per share and its 52-week low is Rs 18 per share.
Vishal Fabrics Ltd acquired 5,28,100 Equity Shares of NANDAN INDUSTRIES PRIVATE LIMITED at a price of Rs 123 per share, amounting to Rs 6,49,56,300. Nandan Industries Private Limited, with an authorised share capital of Rs 6,81,50,000 divided into 50,40,000 Equity Shares and 17,75,000 Preference Shares of Rs 10 each, and a paid-up share capital of Rs 6,09,00,000, comprising 43,15,000 Equity Shares and 17,75,000 Preference Shares of Rs 10 each, recorded a turnover of Rs 226.04 crore. for the financial year ended March 31, 2024. This acquisition, a related party transaction since NIPL became an associate company on March 29, 2024, will result in Vishal Fabrics Limited holding 35.41 per cent of NIPL's Equity Share Capital.
Earlier, the company allotted 50,00,000 equity shares, each with a face value of Rs 5, to Multitude Growth Funds, a Mauritius-based firm, following the conversion of an equal number of warrants. These warrants, part of a preferential allotment, were issued at Rs 30.60 each, and the current conversion involved the receipt of the balance amount of Rs 11,47,50,000 (representing 75 per cent or Rs 22.95 per warrant). This conversion leaves 4,50,00,000 warrants outstanding, which can be converted into an equal number of equity shares within 18 months from their initial allotment, with the remaining 75 per cent of the issue price (Rs 22.95) payable upon conversion.
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About the Company
Vishal Fabrics Ltd, a textile company established in 1985 and part of the Gujarat-based Chiripal Group, manufactures and distributes a wide range of fabrics, including dyed yarn, denim, and custom textile work. Certified for quality and sustainability, it specialises in dyeing, printing, and processing denim and other fabrics for both its collections and client-specific jobs. Its fabrics come in various compositions like 100 per cent cotton, cotton blends, and modal, and they are a leading supplier of stretch denim. With a focus on innovation, they offer diverse finishes, weaves, blends, and colours. Their extensive production capacity comes from multiple facilities in Ahmedabad, Gujarat, and they boast an impressive list of clientele, including well-known international fashion brands. The company has a market cap of over Rs 500 crore.
According to Quarterly Results, the net sales increased by 5 per cent to Rs 403.7 crore and net profit increased by 32 per cent to Rs 9.6 crore in Q3FY25 compared to Q2FY25. In its nine-month results, the company reported net sales of Rs 1,128.4 crore and a net profit of Rs 21.7 crore in 9MFY25. Looking at its annual results, the company reported net sales of Rs 1,450 crore and a net profit of Rs 21 crore in FY24.
The stock is up by 52 per cent from its 52-week low of Rs 18 per share. The company's promoters have a commanding 69 per cent ownership stake, while FIIs hold 3.21 per cent and public shareholders own 27.79 per cent. Investors should keep an eye on this micro-cap textile stock.
Disclaimer: The article is for informational purposes only and not investment advice.