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Funds raised through the issue will be used to repay/prepay borrowings, meeting working capital requirements for the company’s business activities and general corporate purposes
The rights entitlement ratio for the proposed rights issue is 19:29; 19 rights equity shares of Rs. 10 each for every 29 equity shares of Rs. 10 each held by the equity shareholders
Promoter Group shareholders, have confirmed their participation of up to Rs. 58.68 crores
Company fixes September 9, 2021 as record date for the purpose of determining the equity shareholders entitled to receive the rights entitlement in the rights issue
Post Rights issue total outstanding shares to increase to 5.67 crores from 3.42 crores shares
Asian Granito India Limited (AGIL), manufacturer of one of India’s leading tiles brand is scheduled to open its Rights Issue on September 23, 2021. The funds raised through the Issue will be used to repay/prepay certain outstanding borrowings, meeting working capital requirements for the company’s business activities and for general corporate purposes. Right issue are offered at a price of Rs. 100 per Share – 40% discount to current share price of Rs. 166 per share on September 3. Rights Issue closes on October 7, 2021.
AGL Plant – Himmatnagar
The Company will issue 2,24,64,188 fully paid-up Equity Shares of face value of Rs. 10 each for cash at a price of Rs. 100 per Equity Share (including a premium of Rs. 90 per Equity Share) aggregating to Rs. 224.65 crore on a rights basis to eligible equity shareholders in the ratio of 19:29 (19 Equity Shares for every 29 Equity shares fully paid-up Equity Share held by the Eligible Equity Shareholders of the Company, as on the record date).
Mr. Kamlesh Patel, CMD and Mr. Mukesh Patel, MD, Asian Granito India Ltd.
Commenting on the development, Mr. Kamlesh Patel, Chairman and Managing Director, Asian Granito India Ltd. said, “Company has taken many important initiatives in the recent past with a focus to reduce debt, strengthen the core business of tiles and building materials with an aim to moving towards asset light and capital light business model. Proceeds of the issue will further strengthen company’s balance sheet, reduce debt and help fund its strategic growth initiatives. With all these measures, company may become debt free on a standalone basis in the current financial year itself.“
The Promoter & Promoter Group shareholders, have confirmed their participation of up to Rs. 58.68 crore. Certain Promoter and Promoter group shareholders have also indicated that, in case the rights issue is undersubscribed, they reserve the right to subscribe to part or the whole amount of the unsubscribed portion, subject to applicable laws. Post the rights issue, total outstanding shares of the company should increase to 5,67,51,634 equity shares from 3,42,87,446 equity shares as on June 2021. Lead Managers to the rights issue are Holani Consultants Private Ltd. and BOI Merchant Bankers Ltd.
The company plans to become debt free in the next 2-3 years on a consolidated basis. The company has reduced its overall consolidated debt by about Rs. 35 crores, resulting in debt equity ratio improving to less than 0.5 times. In August 2021 company divested its entire 18.87% stake in its associated company – Astron Paper and Board Mills Ltd (Astron Paper) for Rs. 46.94 crores to focus on core business of tiles and building materials. Proceeds from the sale of Astron Paper shares to be utilized to meet long term working capital and business development of Asian Granito India Ltd.
For FY 21, Company reported a net profit of Rs. 57.23 crores on consolidated basis – growth of 36% Y-o-Y. Net sales for FY 21 was reported at Rs. 1,292 crores with 6% growth Y-o-Y and EBITDA was reported at Rs. 135.95 crore with 16% growth Y-o-Y. EBITDA Margin improved 91 basis points to 10.5% in FY 21 while Net profit margin improved by 100 basis points to 4.4%.
Company currently exports to more than 100 countries and planning to expand to 120 plus countries. Company targets to increase its retail touch points to over 10,000, expand exclusive showrooms to over 500.
“Asian Granito India Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to undertake a rights issue of its equity shares (“Issue”) and has filed a letter of offer (“LOF”) with Securities and Exchange Board of India (“SEBI”), BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”). The LOF is available on the website of the SEBI, BSE, NSE and the Registrar to the Issue at www.sebi.gov.in, www.bseindia.com, www.nseindia.com and www.linkintime.co.in respectively, as well as on the websites of the lead managers to the Issue, Holani Consultants Private Limited and BOI Merchant Bankers Limited at www.holaniconsultants.co.in and www.boimb.com. Potential investors should note that investment in equity shares involves a high degree of risk. For details of such risks, potential investors should refer to the “Risk Factors” section of the LOF, prior to making any investment decision with respect to the Issue.”
The Rights Entitlements and the Rights Equity Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or any U.S. state securities laws and may not be offered, sold, resold or otherwise transferred within the United States or the territories or possessions thereof, except in a transaction exempt from the registration requirements of the Securities Act. The Rights Entitlements and Rights Equity Shares are being offered in offshore transactions outside the United States in compliance with Regulation S under the Securities Act and in the United States to “qualified institutional buyers” (as defined in Rule 144A under the Securities Act) in transactions exempt from the registration requirements under Section 4(a)(2) of the Securities Act).
About Asian Granito India Limited
Established in the year 2000, Asian Granito India Limited (AGIL) has emerged as India’s leading home decor brand in a short span of two decades. The company manufactures and markets a wide range of Tiles, Engineered Marble, Quartz and Bathware. AGIL products are synonymous with reliability, adaptability, innovation, quality consciousness and the company has created a strong brand identity, well recognized globally and loyal customer following across segments.
Ranked amongst the top ceramic tiles companies in India, AGIL has achieved nearly 40 times growth in its production capacity, from 2,500 square meters per day in the year 2000 to nearly 98,000 square meters per day which includes 18,000 square meters per day of contractual manufacturing. AGIL was also the only tiles company to be acknowledged in the Vibrant Gujarat Summit 2015 for phenomenal growth.
The Company has state-of-the-art manufacturing units spread across Gujarat and 310 exclusive showrooms, 13 display centers across India. Further, the company has an extensive 6500+ Touch points across India.
The company looks to strengthen its identity as the leader in the Indian ceramic industry by consistently introducing innovative and value-added products in the market to keep pace with its valued customers. Headquartered in Ahmedabad, AGIL is listed on NSE & BSE and reported net consolidated turnover of Rs. 1,292.3 crores in 2020-21. Company exports to more than 100 countries.
For more information, please visit: www.aglasiangranito.com.