Shares of this chemical stock engaged in manufacturing & trading of Dyes stuff, Organic Pigments & Organic Intermediates surged over 13 percent reaching its 52-week high of Rs.295 per share after the company announced a rights issue, offering shares at a 1:3 ratio.
Share Price Variation
In Tuesday’s trading session, the share price of Vipul Organics Limited reached a 52-week high of Rs.295 per share, rising 13.13 percent from its previous close of Rs.260.75 apiece. The share price has retreated since then and is currently trading at Rs.286.50 per share.
What is the news
Vipul Organics Limited, a leading specialty chemicals company in the pigments and dyes sector, announced a rights issue after the Rights Issue Committee meeting.
Shareholders will receive 1 new share for every 3 shares held at a premium of Rs.44 on a face value of Rs.10, totaling Rs.54. The rights issue will be capped at Rs.25 crore.
The company is making substantial investments to expand its capacity, having recently completed enhancements at its Ambernath facility. Construction is progressing rapidly at its greenfield facility in Sayakha.
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The funds raised will support the development of the Sayakha facility, with production set to commence in phases starting in the first quarter of 2025-2026.
Management Commentary
Commenting on the development, Mr. Vipul P Shah, Managing Director, Vipul Organics Limited 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”.
Financial Performance
In its recent financial update, Vipul Organics Limited reported net sales of Rs.38.06 crore for Q1 FY25, representing a 5.3 percent increase from Rs.36.14 crore in the same quarter last year. The company’s net profit for the quarter was Rs.1.14 crore, up from Rs.0.52 crore in Q1 FY24, reflecting a 120 percent increase.
Company Overview
Vipul Organics Limited is one of India’s largest manufacturers of pigments and dyes, prioritizing eco-friendly products and exporting to over 45 countries. The company operates several manufacturing facilities near Mumbai, focusing on innovation and quality across its diverse product range for various industries.
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Written by – Siddesh S Raskar
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