Vipul Organics Announces Rs 25 Crore Rights Issue to Fund Expansion

Specialty chemicals producer Vipul Organics plans to raise Rs 25 crore through a rights issue, offering one share for every three held at Rs 54 per share. Funds will support the Sayakha facility's development, with production starting in 2025-2026. Recent capacity expansion at Ambernath is also noted.

Specialty chemicals maker Vipul Organics announced plans to raise Rs 25 crore through a rights issue, aimed at financing its expansion projects. The rights issue will offer one share for every three shares held, priced at Rs 54 per share, which includes a Rs 44 premium over its Rs 10 face value, according to a company statement.

The funds will be directed towards developing its new Sayakha facility in Gujarat, said Managing Director Vipul P Shah. Production at the site is slated to commence in phases starting the first quarter of 2025-2026.

Shah emphasized that the rights issue price represents a 'substantial discount' to the current market price. Vipul Organics recently completed a capacity expansion at its Ambernath facility in Maharashtra and reported a revenue of Rs 151 crore for the 2023-24 financial year. The company exports to over 45 countries.

(With inputs from agencies.)