Vipul Organics shares surged 13 percent to a fresh lifetime high in trade on October 1, after its board announced a rights issue.
The issue offers investors one share for every three held as of the record date at Rs 54 per share. The record date for the rights issue is expected to be announced later, said the company. This comes at a 79 percent discount as against the closing price of the previous session of Rs 260.75 per share.
The size of the issue is up to Rs 25 crore, and the funds realized through the issue of shares in the development of a new facility in Sayakha, Gujarat. The company reported Rs 151 crore in revenue for FY 2023-24.
At 12.30 pm, Vipul Organics shares were quoting Rs 286 on the BSE, higher by 9.7 percent.
Vipul P Shah, Managing Director, of Vipul Organics said, "The company has undertaken substantial capacity expansion and has decided to do a rights issue to mobilize funds. To reward our shareholders and to include them in the growth of the company, the issue price is at a substantial discount to the current market price."
The dyes and pigment sector is crucial in enhancing packaging materials’ aesthetics and With rising paperboard packaging, there is an increasing demand for dyes as well. The Indian dyes and pigments sector accounts for almost a quarter of the world market, and is projected to grow at a CAGR of 11?tween 2024 and 2032, according to a report by Claight.
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