Gujarat-Based Textile Penny Stock Under Rs 35; Company Allots 69,32,824 Equity Shares on Conversion of Warrants to Elysian Wealth Fund
The stock is up 69.44 per cent from its 52-week low of Rs 18 per share.
Vishal Fabrics Limited, a leading denim fabric manufacturer, has announced that its Fund-Raising Committee approved the allotment of 69,32,824 equity shares, each with a face value of Rs 5. These shares were issued upon the partial conversion of warrants held by Elysian Wealth Fund (formerly Silver Stallion Limited), a non-promoter public category investor. The warrants were originally issued at an issue price of Rs 30.60 each. The company received Rs 15,91,08,310.80 from the allottee, at a rate of Rs 22.95 per warrant, upon the exercise of their conversion rights as per SEBI (ICDR) Regulations, 2018. Following this allotment, the company's issued and paid-up capital has increased to Rs 1,04,77,14,135/-, comprising 20,95,42,827 equity shares of Rs 5 each. The newly allotted shares will rank pari passu with existing equity shares. It's also noted that 3,80,67,176 warrants remain outstanding for conversion, with holders entitled to convert them into an equal number of equity shares by paying the remaining 75%, which is Rs 22.95 per warrant, within 18 months from the original allotment date.
Additionally, the company in its audited financial results for the fiscal year ended March 31, 2025, demonstrated a significant performance improvement. For the full year FY25, total income increased by 5 per cent to Rs 1,521.43 crore, up from Rs 1,451.29 crore in FY24. Net profit for the year also saw healthy growth, rising to Rs 23.84 crore in FY25, a 13 per cent increase compared to Rs 21.13 crore posted in the previous year. The company attributes this growth to its focus on operational excellence, strategic growth, and strengthening its presence in both domestic and international markets through sustainable manufacturing innovation and digital transformation.
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Vishal Fabrics Ltd., an Ahmedabad-based member of the Chiripal Group, stands as one of India's largest denim fabric manufacturers, boasting a capacity exceeding 100 million meters per annum. Renowned for its integrated value chain, cutting-edge infrastructure, and dedication to sustainability and quality, the company leverages a rich heritage in printing, dyeing, and fabric processing. Vishal Fabrics has solidified its leadership in producing wider-width fabrics and made significant inroads into large-scale denim production. A cornerstone of their operations is innovation and sustainability, with green practices embedded throughout their processes—from utilising sustainable raw materials to water recycling and maintaining zero-discharge facilities. This vision-led approach is driven by a core principle of delivering beyond expectations, merging global quality standards with purpose-driven practices.
The company has a market cap of over Rs 500 crore. In April 2025, FIIs bought 50,00,000 shares and increased their stake to 5.61 per cent compared to March 2025. The stock is up 69.44 per cent from its 52-week low of Rs 18 per share. The company's promoters have a commanding 67.30 per cent ownership stake, while FIIs hold 5.61 per cent and public shareholders own 27.09 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.