Vishal Fabrics share price traded higher on Thursday despite a broadly weak trend in the Indian stock market. The small-cap stock rose as much as 2.58% to ₹ 36.50 apiece on the BSE, following the company’s announcement on the conversion of warrants into equity shares.
In a regulatory filing, Vishal Fabrics said its Fund Raising Committee approved the allotment of 2.25 crore equity shares of face value ₹5 each, at an issue price of ₹30.60 per share (including a premium of ₹₹25.60), pursuant to the conversion of an equal number of warrants issued earlier on a preferential basis.
The warrants were issued to three non-promoter, public investors:
Vikasa India EIF I Fund: Allotted 1 crore equity shares; received ₹22.95 crore
Eminence Global Fund PCC – Eubilia Capital Partners: Allotted 75 lakh equity shares; received ₹17.21 crore
NEXPACT Ltd: Allotted 50 lakh equity shares; received ₹11.47 crore
The total proceeds from the conversion stood at ₹51.64 crore, with each investor paying the balance ₹22.95 per warrant. Initially, the warrants were issued at ₹30.60 per unit with 25% of the issue price ( ₹7.65 per warrant) paid upfront.
The company clarified that this completes the warrant conversion process, and no outstanding warrants remain as of date.
Following this conversion, the issued and paid-up share capital of Vishal Fabrics has increased to ₹123.81 crore, comprising 24.76 crore equity shares of ₹5 each. The newly issued shares will rank pari-passu with the existing equity shares.
Vishal Fabrics Share Price Performance
Vishal Fabrics share price fell over 4% in one month, but the stock rallied 29% in three months. The smallcap stock has risen 17% in six months, while it has fallen 13% in one year. However, Vishal Fabrics shares have delivered multibagger returns of 118% over the past two years.
At 11:25 AM, Vishal Fabrics share price was trading 1.18% higher at ₹36.00 apiece on the BSE.