Rajapalayam Mills Rights Issue will open for subscription from 15 March 2021. The company aims for an issue size of ₹69.95 Crores through this rights issue.
Rajapalayam Mills Limited
Rajapalayam Mills Limited is part of the South India-based Ramco Group, incorporated in 1936 and founded by P. A. C. Ramasamy Raja. The Company is engaged in the business of manufacturing cotton yarn ranging from 4s to 355s (single/double yarn) and fabrics. Presently, it has four manufacturing facilities for cotton yarn and one manufacturing facility for fabric.
The Company manufactures a wide range of products like Open End yarn, Ring yarn, Compact yarn, TFO yarn, Gassed yarn, Mercerised yarn, Slub yarn, Multi Count yarn, Melange yarn, Dyed High Twist yarn, Core Spun yarn, and Eli twist yarn. Their products are tailor-made to cater to specific customer needs. They sell their products in domestic and international markets. The Company is also engaged in the generation of electricity from windmills. It has an aggregate installed capacity of 35.15 megawatts (MW) wind power facilities, which it uses for its captive consumption. This helps the Company to control its power costs.
Objectives of the Issue
- Modernization of the Company’s existing Open End Spinning Machines located at Rajapalayam Mills, Rajapalayam.
- Setting up a new additional line of mercerization machines in the Company’s Mercerizing Division located at Rajapalayam Mills, Rajapalayam.
- General corporate purposes.
Rajapalayam Mills Rights Issue Issue Timetable
| Bid/Offer Opens On | Mar 15, 2021 |
| Bid/Offer Closes On | Mar 30, 2021 |
| Record Date | Mar 5, 2021 |
| Deemed Date of Allotment | Apr 8, 2021 |
| Renunciation of Rights Entitlements | Mar 24, 2021 |
Rajapalayam Mills Rights Issue Detail
| Issue Open | Mar 15, 2021 – Mar 30, 2021 |
| Security Name | Rajapalayam Mills Limited |
| Issue Size (Shares) | 0.12 Crores |
| Issue Size (Amount) | ₹69.95 Crores |
| Issue Price | ₹569 per share |
| Face Value | ₹10 per share |
| Market Lot | 1 per share |
| Listing At | BSE |
| Terms of Payment | The Issue Price of ₹569 per Rights Equity Share shall be payable in entirety at the time of making the application. |
| Entitlement | 1 Rights Equity Share for every 6 Fully Paid-up equity shares held on the Record Date |
Company Financials
| Particulars | For the year/period ended (Rs. in Millions) | |
|---|---|---|
| 31-Mar-20 | 31-Mar-19 | |
| Total Revenue | 3,663.47 | 4,284.07 |
| Profit After Tax | 920.68 | 1,044.75 |
| Net Worth | 17,888 | 17,012.26 |
Rajapalayam Mills Rights Issue Registrar
Cameo Corporate Services Limited
Subramanian Building # 1, Club House Road,
Chennai 600 002 – India
Website: https://online.cameoindia.com/
Company Contact Information
Rajapalayam Mills Limited
Rajapalayam Mills Premises, Post Box No. 1,
P.A.C. Ramaswamy Road,
Rajapalayam – 626117
Final Thoughts
Applying for the rights issue is purely a personal choice. make sure you make a detailed study about the company and rights issue before you make an investment decision.
Happy investing