Rajapalayam Mills’ main business is its manufacture of cotton yarn and garments. It also generates electricity through its windmills. The company specializes in finer count yarn ranging from 4s to 300s (single/double yarn), as well as value-added products such as mercerized, melange, slub, and gassed yarn.
The company’s fabric facility, which will be operational in FY 2021, creates special value-added fabric on its Jacquard Looms. In FY 2022, the unit produced 79 lakh meters of fabric and sold 91 lakh meters of fabric, a 122% rise. In and around Rajapalayam, the corporation conducts four manufacturing plants. It can accommodate 1,47,920 spindles and 2,960 rotors. It also contains 35 megawatts (MW) of wind-generating facilities for captive electricity usage.
The company exports to a wide variety of nations, with Turkey and Portugal being relatively fresh market entrances. It had INR 187 crores in exports in FY 2022, up from INR 106 crores in FY 2021.
Objects of the Issue:
The company intends to utilize the gross proceeds raised through the Issue to part finance the following objects:
- Capital expenditure for enhancement of fabric division capacity comprises of (i) installation of additional 166 looms (“Looms Expansion”) and (ii) installation of fabric finishing infrastructure (“Fabric Processing”);
- Capital expenditure for modernization of existing spinning capacity; and
- Capital expenditure for setting up of electrical infrastructure capacity to support existing and proposed infrastructure
Rajapalayam Mills Rights Issue Date, Size & Price
| Rajapalayam Mills Rights Issue Date | Coming soon |
| Rajapalayam Mills Rights Issue Price | INR 569 per share |
| Issue Size (in Shares) | 6,14,680 shares |
| Issue Size (in INR) | INR 34.98 crore |
| Issue Entitlement | 1 Rights Equity Share for every 14 Fully Paid-up equity shares held on the Record Date |
| Terms of Payment | The full amount of the Issue Price being INR 569 will be payable on application |
| Rajapalayam Mills Rights Issue Record Date | 30 December 2022 |
| Face Value | INR 10 per share |
| Listing On | BSE |
Rajapalayam Mills Financial Performance
| FY 2020 | FY 2021 | FY 2022 | |
|---|---|---|---|
| Revenue | 357.83 | 411.78 | 689.65 |
| Expenses | 348.89 | 419.84 | 578.12 |
| Net income | 6.41 | (26.64) | 38.29 |
| Margin (%) | 1.79 | (6.47) | 5.55 |
Rajapalayam Mills Rights Issue Timetable
| Rajapalayam Mills Rights Issue Record Date | 30 December 2022 |
| Credit of Rights Entitlement | Coming soon |
| Rajapalayam Mills Rights Issue Opening Date | Coming soon |
| Last Date for Market Renunciation | Coming soon |
| Rajapalayam Mills Rights Issue Closing Date | Coming soon |
| Finalization of Basis of Allotment | Coming soon |
| Rajapalayam Mills Rights Allotment Date | Coming soon |
| Credit Date | Coming soon |
| Listing Date | Coming soon |
Rajapalayam Mills Valuations & Margins
| FY 2020 | FY 2021 | FY 2022 | |
|---|---|---|---|
| EPS | – | – | – |
| PE ratio | – | – | 8.31 |
| RONW (%) | – | – | |
| ROCE (%) | – | – | 3.48 |
| EBITDA | – | – | |
| Debt/Equity | 0.09 | (0.36) | 0.44 |
| NAV per share | – | – |
Company Contact Information
Rajapalayam Mills Limited
Rajapalayam Mills Premises, Post Box No. 1,
P.A.C. Ramaswamy Road,
Rajapalayam – 626117
Phone: +91-4563-235666
Email: rajacot@ramcotex.com
Website: http://www.rajapalayammills.co.in/
Rajapalayam Mills Rights Issue 2022 Registrar
Cameo Corporate Services Limited
Phone: +91-44-28460390
Email: priya@cameoindia.com
Website: https://ipo.cameoindia.com
Rajapalayam Mills Rights Issue 2022 Lead Manager(s)
- Vivro Financial Services Private Limited
Rajapalayam Mills Rights Offer FAQs
Q1. What is price of Rajapalayam Mills Rights Issue?
Ans. The issue price is INR 569 per share.
Q2. What is entitlement ratio of Rajapalayam Mills Rights Issue?
Ans. The eligible shareholders are offered 1 Rights Equity Share for every 14 Fully Paid-up equity shares held on the Record Date.
Q3. What is the Record Date of Rajapalayam Mills Rights Issue?
Ans. The Record date is 30 December 2022.
Q4. How to Apply in Rajapalayam Mills Rights Offer?
Ans. The best way to apply in Rajapalayam Mills Rights Offer is through Internet banking ASBA. You can also apply online through your stock broker using UPI. If you prefer to make paper applications, fill up an application Form form and deposit the same to your broker.
