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Vipul Organics Shares Soar 13%, Touches its ATH with 1:3 Rights Issue – Get Details Here

Vipul Organics shares surged 13% after announcing a rights issue offering one share per three held at ₹54, a 79% discount. The ₹25 crore raised will fund a new Gujarat facility.
Vipul Organics Shares Soar 13%, Touches its ATH with 1:3 Rights Issue – Get Details Here

Vipul Organics shares surged 13% to reach a new all-time high during trading on October 1, following the announcement of a rights issue by the company’s board. The rights issue offers shareholders one share for every three held at ₹54 per share. The record date for this issue will be announced later, according to the company.

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The offer price of ₹54 per share is set at a 79% discount compared to the previous session’s closing price of ₹260.75. The total size of the issue is expected to be around ₹25 crore. The funds raised will be used for the development of a new facility in Sayakha, Gujarat.

At 12:30 PM, Vipul Organics shares were trading at ₹286 on the BSE, reflecting a gain of 9.7%. This sharp rise follows investor enthusiasm over the rights issue and the company’s plans for expansion.

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Managing Director Vipul P Shah highlighted that the company has undertaken significant capacity expansion and opted for a rights issue to mobilize funds. The discounted issue price is intended to reward shareholders and involve them in the company’s growth.

The dyes and pigments sector, essential for enhancing packaging aesthetics, is poised for growth. The Indian market, which contributes nearly a quarter of the global share, is expected to expand at an 11% CAGR from 2024 to 2032, driven by rising demand in packaging.

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