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Hot Pursuit News

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(01 Oct 2024, 15:06)

Vipul Organics hits all-time high after board OKs Rs 25 cr right issue

Vipul Organics spurted 19.04% to Rs 310.40 after the company’s right issue committee approved raising Rs 25 crore through right issue of equity shares.


The company will offer 1 share for every 3 shares held on record date at a premium of Rs 44 for the share of face value Rs 10 (total price Rs 54).

The company said that it is investing significantly on expansion of its capacity. It has just concluded its capacity expansion at its Ambernath facility. Construction is on full steam at its greenfield facility at Sayakha. The funds raised wil be utilized to ensure development of the Sayakha facility, and production will begin in a phased manner from the first quarter of 2025-2026.

Vipul P Shah, managing director, Vipul Organics, said, “The company has undertaken substantial capacity expansion and has decided to do a rights issue to mobilise funds. With a view 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.”

Vipul Organics is a specialty chemicals company in the pigments and dyes segment. The company provides total colouring solutions to paint, printing ink, plastics and masterbatches, textiles, rubber & latex, agriculture, leather, dietary supplements and pharmaceuticals, food beverages and confectionaries industries.

The company’s consolidated net profit surged to Rs 1.14 crore in Q1 FY25 as compared with Rs 0.52 crore in Q1 FY24. Net sales increased 5.3% YoY to Rs 38.06 crore in Q1 FY25.

The counter hit all-time high at Rs 312.90 in intraday today.

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