Home / Knowledge / News / Textiles / Polus Global Fund invests Rs 50 crore in Nandan Denim
Polus Global Fund invests Rs 50 crore in Nandan Denim
22
Sep '15
Deepak Chiripal
Deepak Chiripal
Nandan Denim Limited (NDL) will issue 25 lakh fully convertible warrants to UK-based foreign institutional investor, Polus Global Fund to raise a total of Rs 50 crore.

In a press release, India’s second and world’s fifth largest integrated denim fabric producer said 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 per cent premium to September 18 closing price of Rs 115.50 per share on BSE and 250 per cent premium to the book value of Rs 57 per share.

Nandan Denim will seek shareholders’ approval for this preferential allotment at its upcoming Annual General Meeting (AGM) on September 29, 2015.

“The UK-based FII currently holds 1.35 lakh shares or 0.30 per cent stake currently in the company which will increase to 26.3 million shares or 5.48 per cent post conversion of the warrants into equity shares,” NDL added.

The warrant holder will have to pay an amount equivalent to at least 25 per cent or Rs 12.5 crore of the consideration on or before the allotment of warrants while balance 75 per cent shall be payable on or before the time of exercise of the warrants i.e. within 18 months.

Polus Global Fund is registered in the Republic of Mauritius and is managed by Fidelis Trust & Corporate Services Limited having category-1 global business license.

The fund has made strategic investments in other Indian entities like Zee Learn Limited, Omaxe Limited, Archies Limited, ERA Infra., Engineering Ltd, Gujarat Apollo Industries Ltd, IDFC Limited, Mandhana Industries Limited, etc.

CEO Deepak Chiripal said, “The company will use the fresh funds for its expansion project and having attained global scale, we now aim to internalise the global way of doing business.”

“We wish to sustain our efforts on our quality and commitment level across the board,” Chiripal too added.

Nandan Denim is in the middle of its capex execution with outlay of Rs 612 crore for expansion of denim fabric manufacturing capacity, spinning capacity and shirting capacity.

The CAPEX has a requirement of equity funding to the tune of 30 per cent and this equity infusion, coupled with the internal accruals would balance the funding while the external funds have already been tied up.

NDL at its board meeting on April 29, 2015 approved infusion of capital through issue of convertible warrants to promoter & non promoter group for an amount not exceeding Rs 100 crore.

As required under the SEBI (ICDR) Regulations, the allotment of warrants pursuant to the special resolution shall be completed within a period of fifteen days from the date of annual general meeting.

NDL commenced its operations in 1994 with textile trading business and forayed into textile manufacturing in 2004 and currently engages in manufacturing of denims, cotton fabrics and khakis.

In the interim, NDL has expanded its capacity from 6 MMPA to the intended capacity of 110 MMPA over the period of last 10 years.

The company is listed on BSE and NSE and for the year ended March 31, 2015, NDL posted net profit of Rs. 51.4 crore on net sales of Rs. 1,096.5 crore. (AR)

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 25th Sep 2017

SVP Group to build $300 mn spinning plant in Sohar

ShriVallabh Pittie Industries (SVP) Group, a diversified yarn...

Apparel/Garments | On 25th Sep 2017

Vietnam textile sector to gain if EU FTA gets ratified

Experts feel the Vietnam-European Union (EU) free trade agreement...

Courtesy: Business Wire

Textiles | On 25th Sep 2017

Invista to use ADN technology at joint project in France

Invista, a leading producer of chemical intermediates, polymers, and...

Interviews View All

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search