Asian Granito receives strong response to its rights issue, oversubscribed by 1.28 times

12 May 2022 , 11:28 AM

Asian Granito India Limited (AGL) has announced that its Rights Issue of Rs441 crores, largest ever by any Ceramic Company in India, achieved successful closure, receiving overwhelming response from the shareholders and investors despite challenging times.

The public portion of the Rights Issue was subscribed more than 1.38 times receiving bids for 6.87 crore shares or Rs432 crore of bids received. On an overall basis, the Company received bids for over 8.89 crore shares or Rs561 crore of bids in the Rights Issue on the closing date (May 10) against 6.99 crore shares or Rs441 crore offered, representing more than 127% subscription.

The allotment of equity shares will take place on or about 19th May, 2022. The Rights shares are expected to be listed on the BSE and NSE on or around 24th May, 2022.

Equity shares in the Rights Issue were offered at a price of Rs. 63 per share. The Rights Entitlement Ratio for the Rights Issue was 37:30 (37 Rights Equity Shares of Rs. 10 each for every 30 equity shares of Rs. 10 each held by the equity shareholders on the record date). The Rights Issue of the Company was open for subscription from April 25, 2022 till May 10, 2022.

The proceeds of the Rights Issue would be utilised to fund the Strategic Mega Expansion Plans in Value Added Luxury Surfaces & Bathware Segments including GVT Tiles, Sanitaryware and SPC Flooring etc. and to fund various strategic initiatives.

The Company had launched a highly innovative campaign to create awareness about the Rights Issue, using broad-based and multiple means of communication.

These included television, print, digital and social media, emails and SMSs to reach out to the shareholders. The Rights Entitlement (RE) was actively traded in demat form on the stock exchanges since SEBI introduced this platform and it was a resounding success reflecting broad-based interest in the Rights Issue.

Commenting on the success of the Rights Issue, Shri Kamlesh Patel, Chairman and Managing Director, Asian Granito India Ltd said, “I express my gratitude and sincere thanks to our dear and esteemed shareholders and investors for their support and participation in the Rights Issue. With all your support in these challenging times, the Rights Issue witnessed subscription of more than 1.27 times. We are delighted and humbled by their extraordinary show of confidence in the future of AGL.”

At around 11:30 AM, Asian Granito India was trading at Rs75.55 apiece down by Rs1.8 or 2.33% on the BSE.