Shares under the rights issue are offered at a price of Rs 63 per share i.e. 46.6% discount to the closing share price of Rs 118 per share on 6 April 2022 on NSE.
The company said that its rights issue is scheduled to open on 25 April 2022. The issue will close on 10 May 2022.Asian Granito India will issue approximately 7 crore fully paid-up equity shares at a price of Rs 63 per equity share, aggregating Rs 441 crore on a rights basis to eligible equity shareholders. The shares will be issued in the ratio of 37:30 (37 equity shares for every 30 equity shares fully paid-up equity share held by the eligible equity shareholders).
The company has fixed 12 April 2022 as record date for the purpose of determining the equity shareholders eligible to receive the rights entitlement in the rights issue.
The promoter & promoter group shareholders have confirmed their participation of up to 28.99% shareholding (i.e. upto 100% of their current shareholding) amounting to about Rs 128 crore. Promoter group also reserve the right to subscribe to part or the whole amount of the unsubscribed portion of the issue.
Shares of Asian Granito India were down 1.99% at Rs 115.65 on equity dilution worries. A rights issue is a fresh issue of shares to the existing shareholders of the company. It leads to dilution in the value of available shares.
Post completion of the rights issue, total outstanding shares of the company will increase to 12.67 equity shares from 5.67 crore equity shares as on 31 March 2022.
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Funds raised through the issue shall be utilised towards the company's expansion plans in value added luxury surfaces and bathware segments, setting up one of the India's largest display centres, working capital requirements of the above new projects and general corporate purposes.
Kamlesh Patel, chairman and managing director, Asian Granito India, said: "AGL has lined up major expansion plans in Morbi region in the state of Gujarat, keeping in mind strategic locational advantages, proximity to the raw material sources, easy & quick availability of manpower, proximity to some of the country's largest ports, among others. With commercialisation of the proposed plans, AGL is expected to strengthen its position as an Integrated Luxury Surfaces and Bathware Solutions Brand and up the Group's margin profile in near to medium term."
In October 2021, the company successfully completed rights issue of Rs 224.64 crore. Post this, the company has become net debt free on a standalone basis. The issue was oversubscribed by 1.15 times.
Asian Granito India is one of the largest luxury surfaces and bathware solutions brands in the country. The company currently exports to more than 100 countries and planning to expand to 120 plus countries. It targets to increase its retail touch points to over 10,000, expand exclusive showrooms to over 500.
Net profit of Asian Granito India declined 28.67% to Rs 17.81 crore on 13.57% rise in net sales to Rs 436.64 crore in Q3 December 2021 over Q3 December 2020.
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