Rohit Sharma will invest in Swaraj Shooting
Both Indian cricket and stock market are such fields where there is always uncertainty and excitement. When legends of the cricket field enter the stock market pitch, it is natural for investors to perk up. Indian team’s ‘Hitman’ Rohit Sharma is now not only taking news about the bowlers, but is also making his innings in the world of investment. The latest news is that Rohit Sharma, young star Tilak Verma and some other well-known personalities from the cricket world have shown interest in a textile company ‘Swaraj Suiting’. This investment of cricketers in this company which has made its investors rich in the last 5 years has become a topic of discussion in the market.
The names that have been revealed by Swaraj Suiting in the fund raising process (Preferential Issue) are shocking. According to the company’s list, Indian team’s ‘Hitman’ Rohit Sharma, Mumbai Indians and Team India’s rising star Tilak Verma, batsman Shreyas Iyer’s father Santosh Venkateshwaran Iyer and KKR coach Abhishek Mohan Nair are going to invest in this company. According to media reports, the company is going to allot 11,000 shares each to these four investors. This investment has been made in a smallcap company, whose market cap is around Rs 599 crore.
Big plan to raise Rs 103 crore
Swaraj Suiting’s intention is not limited to just joining these giants, rather the company is collecting a big fund for its expansion. The company has proposed to issue a total of 43,76,500 shares, the price of which has been fixed at Rs 236 per share. If everything goes as per plan and shareholders and regulatory approval is received, then the company will earn about Rs 103.28 crore.
Apart from this, the company also plans to issue 67,97,000 ‘warrants’. If understood in simple language, warrant is a kind of right which can be converted into shares in future. The total value of these warrants has been estimated at Rs 160.40 crore. As soon as these warrants are converted into shares, there will be a huge increase in the share capital of the company. Not only this, the company has sought permission to increase the borrowing limit to Rs 1,000 crore to expand its business.
900% return in 5 years
The biggest attraction for investors is the past performance of the company. Stock market figures are witness to the fact that Swaraj Suiting has not disappointed its investors. On November 27 also, as soon as the news came, the stock saw a rise and it rose by 2.54 percent to reach Rs 279. If we talk about returns, the stock has jumped by about 44 percent in the last one month alone.
This stock has proved to be no less than a jackpot for long term investors. In the last five years, this stock has given a strong return of 900 percent. That means, if someone had invested money in it five years ago, his amount would have increased 9 times. If we look at the fundamentals of the company, its ROE (Return on Equity) is 24.12 percent, which makes it a profitable deal. At the same time, the PE ratio is 17.89, which is also attracting investors in terms of valuation.
What does the company do?
Swaraj is active in suiting textile industry. This company manufactures fabrics like denim and cotton, which are used in jeans, bottomwear and home textile.
The company’s job is not just to sell clothes, rather it handles many stages of manufacturing. In their factories, the entire work from dyeing the thread to weaving the cloth and its finishing is done in-house. This company supplies its goods to many big and renowned textile brands.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.