Asian Granito, a tile maker, announced that it has filed draught papers for a Rs 500 crore rights issue to support its development aspirations.
“The company has filed draft Letter of Offer with the regulatory authorities to raise up to Rs 500 crore via a rights issue of the equity shares to fund the mega expansion plans and strategic initiatives,” it said in a statement issued here.
As part of its development goals, the business has established three new state-of-the-art production facilities in Morbi, Gujarat, under newly created fully owned subsidiaries, to focus on value-added luxury surfaces and bathware categories such as GVT tiles, sanitary ware, and SPC flooring. In April 2023, the new production facilities are planned to open for business.
“Indian Industry has been witnessing a significant shift in the recent years from double charge tiles to value added large format GVT tiles and slabs,” said Kamlesh Patel, Chairman and Managing Director, Asian Granito India.
AGL now manufactures GVT tiles and sanitary ware in-house as well as through third-party manufacturers.
“To fuel the mega expansion plan in these segments and various strategic initiatives, the Board has approved issuance of equity shares for up to Rs 500 crore via a rights issue. With commercialisation of the proposed plans as above, AGL is expected to further strengthen its position as an integrated luxury surfaces and bathware solutions brand and up the group’s margin profile in near to medium term,” he added.
Pantomath Capital Advisors, a mid-market merchant banker with a specialist branch for the building materials business, has been hired, according to the firm.
