Gujarat based Nandan Denim to gather Rs 50 crore from UK based Investor firm

Ahmedabad

Gujarat headquartered Nandan Denim Limited (NDL), India’s second and world’s fifth largest integrated denim fabric maker, will issue 25 lakh fully convertible warrants to UK-based foreign institutional investor, Polus Global Fund, for a total consideration of Rs 50 crore.

The warrants will be converted into equity shares at Rs 200 per share within 18 months time. The conversion price of Rs. 200 per share is at over 70% premium to September 18 closing price of Rs. 115.50 per share on BSE and 250% premium to the book value of Rs 57 per share.

NDL will seek shareholders’ approval for this preferential allotment at its upcoming Annual General Meeting (AGM) on September 29. The UK-based FII currently holds 1.35 lakh shares or 0.30% stake in the company which will increase to 26.35 lakh shares or 5.48% post conversion of the warrants into equity shares. The warrant holder will have to pay an amount equivalent to at least 25% (Rs 12.5 crore) of the consideration on or before the allotment of warrants while balance 75% shall be payable on or before the time of exercise of the warrants (i.e. within 18 months), Deepak Chiripal, CEO NDL said today.

NDL at its board meeting on April 29 this year had approved infusion of capital through issue of convertible warrants to promoter and non promoter group for an amount not exceeding Rs 100 crore for the growth of the company.

Polus Global Fund is registered in the Republic of Mauritius and is managed by Fidelis Trust and Corporate Services Limited having category 1 global business licence. The Fund has made strategic investments in the several Indian entities till 31st December 2014 which include Zee Learn Limited, Omaxe Limited, Archies Limited, ERA Infra. Engineering Ltd, Gujarat Apollo Industries Ltd, IDFC Limited, Mandhana Industries Limited, Radico Khaitan Limited, Siti Cable Network Limited, Tata Global Beverages Limited, he said.

NDL is a part of leading conglomerate, Chiripal Group, established in 1972 and is currently diversified across several businesses like Textiles, Petrochemicals, Chemicals, Packaging, Infrastructure and Education. It is headquartered in Ahmedabad,and has expanded its capacity from 6 MMPA to the intended capacity of 110 MMPA over the period of last 10 years. Further, company has earmarked a capacity expansion plan to strengthen its domestic market share, expand its exports business and have an increased focus on value-added segments. Post expansion, NDL will become the largest denim manufacturer in the country and the fourth largest in the world.

The BSE and NSE listed company has a state-of-the-art manufacturing facility unit near Ahmedabad, and exports its denim fabric to over 28 countries.

– DeshGujarat