Not 1 But 4 Cricketers, Including Rohit Sharma, Tilak Verma & Many More: Bought 44,000 Shares of This Textile Manufacturer

A textile manufacturer with a market capitalisation of around Rs 560 crore is undertaking a significant fundraising effort that has garnered attention from the cricketing community. The company has proposed a preferential issue of 43,76,500 equity shares at Rs 236 per share, aiming to raise Rs 103.28 crore, subject to shareholder and regulatory approvals. Notable proposed allottees in this issue include cricketers Rohit Sharma, Abhishek Nayar, and Tilak Varma, as well as Santosh Iyer, the father of cricketer Shreyas Iyer, who are among the 198 identified investors. Furthermore, the company plans to issue 67,97,000 convertible warrants, also priced at Rs 236 each, to its promoter group and other identified investors, aggregating Rs 160.40 crore. These warrants can be converted into an equal number of equity shares later, which will significantly expand the company’s equity base upon conversion.

The stock name is Swaraj Suiting Ltd.

Beyond the fundraising via shares and warrants, Swaraj Suiting is also seeking shareholder approval for several key financial resolutions designed to increase its operational and borrowing flexibility. These proposals, which will be voted on at an Extra-Ordinary General Meeting convened on December 24th, include raising the company's overall borrowing limit to Rs 1,000 crore, which will allow it to exceed the current ceiling based on paid-up capital and free reserves. Additionally, the board has approved raising the limit for creating charges or mortgages on the company’s assets up to Rs 1,000 crore. The company is also seeking authorisation to extend loans or provide guarantees up to Rs 75 crore to entities where its directors may have an interest, further broadening its financial mandate.

About the Company

Swaraj Suiting Ltd., incorporated in 2003, is a textile manufacturing company that specialises in the production of grey and finished fabrics used in home textiles, bottom wear, and other applications. The company’s core focus is on Denim and Polyester Viscose (PV) fabrics, and it maintains a presence across the entire value chain, covering processes from spinning, warping, and yarn dyeing to weaving, fabric processing, and finishing. Its product portfolio includes a variety of Denim and PV fabrics, alongside custom-developed denim with thousands of samples prepared. Furthermore, Swaraj Suiting expanded its brand presence in 2019 by acquiring Modway Suiting Private Limited and subsequently launching its own key denim brand, “Swaraj Denim”.

On Wednesday, shares of Swaraj Suitings Limited gained 1.74 per cent to Rs 257.40 per share from its previous closing of Rs 253 per share. The stock has a 52-week high of Rs 263.65 per share and a 52-week low of Rs 138.50 per share. The stock has a PE of 13x whereas the sectoral PE is 20x. The stock is up by 86 per cent from its 52-week low of Rs 138.50 per share.

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