Asian Granito to raise Rs 90 crore through preferential warrants issue

Last Updated: Wed, Mar 13, 2019 17:46 hrs
Asian Granito (Image Courtesy: Asian Granito)

Home decor major Asian Granito Limited said on Wednesday it is planning to issue 50 lakh convertible warrants on preferential basis to promoter and non-promoter group at Rs 180 per share.

The ceramic manufacturer and marketer is expected to raise Rs 90 crore through the warrants issue. The proceeds will be used to fund expansion plans, debt reduction, meet working capital requirement and improve capital structure.

Asian Granito expects to receive the first installment of 25 per cent of issue proceeds totalling Rs 22.5 crore by April-end. A total of 50 lakh warrants will be issued to promoter and non- promoter group in equal proportion.

The promoter group holds 32.73 per cent stake in the company, which is expected to increase to about 35 per cent post the warrants conversion. Institutions including mutual funds and foreign portfolio investors hold 8.16 per cent stake.

"The company has taken a variety of branding initiatives and recalibrated the existing market approach in housing decor industry and the results are fantastic," said Asian Granito's Managing Director Mukesh Patel.

"By capitalising on its high-end products range, the company is confident of excellent responses from the domestic and export market, and expects to grow exports significantly over the next two to three years," he said.

Ranked among top three listed ceramic tiles companies in the country, Asian Granito has achieved 40 times growth in its production capacity -- from 2,500 square metres in the year 2000 to one lakh square metres now.

Headquartered in Ahmedabad, it reported a net consolidated turnover of Rs 1,155.6 crore in 2017-18 with exports to more than 58 countries.