MUMBAI, India, Jan 28, 2021 /PRNewswire/ -- Pursuant to applicable provisions and regulations, SVP Global Ventures Ltd, one of the largest compact cotton yarn manufacturers in the world has announced it's intention to issue upto 2,23,80,952 Convertible Equity Warrants to it's parent company, Shri Vallabh Pittie Ventures Private Pvt. Ltd.
The aggregate value of the transaction will stand at ¬Rs. 235 Crs. for cash and the allotment of warrants will be completed within 15-day period from the date of shareholders approval.
The Warrant holder has the option to convert Equity warrants into equivalent number of fully paid up equity shares of face value of Rs.1/- each, in one or more tranches within 18 months from the date of allotment of warrant, at an issue price of Rs 105/- per Equity Share and is subject to interim adjustments by way of capitalisation of profits or reserves demerger, rights issue or any consolidation/reclassification activities.
On the announcement of the Preferential Issue of Equity Warrants, Mr Chirag Pittie, Director, SVP Global Ventures Ltd. stated "The Issue of Equity warrants and its conversion at 37% premium over current market price would help in strengthening the capital structure of the company. The company is committed to deliver long-term sustainable growth to its stakeholders by continuous reduction in overall debt and expansion in high-margin compact yarn business."
As on date, the Pre Issue Shareholding of the Promoter and Non Promoter stood at 68.71% and 31.29% respectively. Post issue the promoter and promoter group shareholding will be 73.41%. The stock opened at Rs 79.85 and closed at Rs 76.90 per share and witnessed a weekly delivery quantity of approx. 9.5L shares
Recently, the company declared its Q3FY21 and 9 month ended results where it has reported a 210% increase in its QoQ Consolidated PAT and 55% increase in its EBIDTA QoQ; resultant of better operational efficiencies, better product mix and cost rationalisation efforts.
Safe Harbor Statement
Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential project characteristics, project potential and target dates for project related issues are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. The company assumes no obligation to update forward-looking statements to reflect actual results changed assumptions or other factors.
For more information, Please contact
Shahab Shaikh, Concept PR - [email protected]
Amruta Desai, Concept PR - [email protected]
About SVP Global Ventures :
Shri Vallabh Pittie Group (SVP Group) established in 1898 by late Shri Vallabh Pittie, as a textile trading house, has now become one of the largest compact cotton yarn manufacturers in the world. The Company is headquartered in Mumbai and is primarily engaged in the business of manufacturing polyester, polyester & cotton blend, and 100% cotton yarn across state-of-the-art manufacturing facilities in Jhalawar, Rajasthan, Ramnad, Coimbatore and Sohar, Oman. The company expanded its manufacturing operations in 2017 by setting up and starting commercial operations from state of the art, most modern and automated, 150,000 spindles and 2,400 rotors cotton yarn manufacturing facility in Jhalawar, Rajasthan. Further, between 2018-2019 it commenced set up and commercial operations of a manufacturing unit of 3500 rotors and 150,000 spindles in Oman. As on date the company has an aggregate manufacturing capacity of 4,00,000 spindles and 5900 rotors in India and Oman and has 2 international offices based in US, Georgia and Europe, Lithuania and currently exports to China, Bangladesh, Pakistan, Vietnam, Portugal and Turkey.
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