Gujarat-based textile penny stock under Rs 40; Company allots 2,25,00,000 equity shares on conversion of warrants to 3 FIIs; Check names of FIIs inside!

Vishal Fabrics Limited, a leading denim fabric manufacturer, announced today the outcome of its Fund-raising Committee Meeting held on August 6, 2025. The committee approved the conversion of 2,25,00,000 warrants into an equal number of equity shares. These shares, with a face value of Rs 5 each, were issued at a price of Rs 30.60 each (including a premium of Rs 25.60) to "Non-Promoter/Public Category" investors. This conversion follows the receipt of Rs 51,63,75,000 from the allottees, representing the remaining 75 per cent of the issue price (Rs 22.95 per warrant) for exercising their conversion rights. The initial allotment of these warrants on a preferential basis was made on September 12, 2024, at an issue price of Rs 30.60 per warrant, with 25 per cent (Rs 7.65 per warrant) paid upfront.

As a result of this conversion and allotment, the issued and paid-up capital of Vishal Fabrics Limited has increased to Rs 123,80,50,015, comprising 24,76,10,003 equity shares of Rs 5 each. The newly allotted equity shares will rank equally with the company's existing equity shares. Noteworthy investors in this conversion include VIKASA INDIA EIF I FUND, Eminence Global Fund PCC - Eubilia Capital Partners Fund I, and NEXPACT Limited. The warrants had an 18-month tenure for conversion, with any unexercised warrants lapsing and the initial payment being forfeited by the company.

Additionally, Vishal Fabrics Limited has announced that a Board of Directors meeting will be held on Friday, August 8, 2025, at Shanti Corporate House, Bopal-Ambli Road, Ahmedabad - 380058. The primary agenda for the meeting is to consider, approve, and take on record the Standalone and Consolidated Unaudited Financial Results of the Company for the quarter ended June 30, 2025. Additionally, the Board will discuss any other business with the permission of the Chair.

About the Company

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.

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.

The company has a market cap of over Rs 700 crore. The stock is up over 70 per cent from its 52-week low of Rs 21.05 per share. The company's promoters have a commanding 60.56 per cent ownership stake, while FIIs hold 17.05 per cent, DIIs hold 0.04 per cent and public shareholders own 22.35 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.