Gujarat-based textile penny stock under Rs 40; Company allots 80,67,176 equity shares to Mauritius-based Elysian Wealth Fund

Vishal Fabrics Limited, a prominent denim fabric manufacturer, announced today that its Board of Directors approved the allotment of 80,67,176 equity shares to the Mauritius-based Elysian Wealth Fund (formerly Silver Stallion Limited). These shares, each with a face value of Rs 5, were issued for Rs 30.60 following the conversion of an equal number of warrants. The company received Rs 18,51,41,689.20 from Elysian Wealth Fund, representing the remaining 75 per cent of the issue price (Rs 22.95 per warrant) as the fund exercised its right to convert the warrants into equity shares on a preferential basis, under SEBI (ICDR) Regulations, 2018.  

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 87.2 per cent from its 52-week low of Rs 21.05 per share. The company's promoters have a commanding 65.07 per cent ownership stake, while FIIs hold 8.72 per cent and public shareholders own 26.21 per cent.

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