Gujarat Cotex, a diversified textiles, real estate, hospitality and agro commodity trading company, plans to raise ₹43 crore through a rights issue to fund its expansion plans.
The rights issue will close for subscription on May 8. The last date for on-market renunciation of REs is May 5.
The rights issue comprises 8,54,64,000 fully paid-up equity shares of face value ₹5 each, aggregating to ₹43 crore.
Proceeds from the issue will be used to support the company’s expansion plans and strengthen its financial position. The issue is being offered in the entitlement ratio of 6:1 (6 rights shares for every 1 equity share held).
Founded in 1992 in the textile manufacturing segment, Gujarat Cotex transitioned to trading a wide range of grey and dyed polyester fabrics in 2016-17, serving power loom operators and industrial clients.
Since 2007–08, the company has expanded into real estate through the purchase and sale of plots, and is now foraying into hospitality with an upcoming venture.
The company recently entered agro-commodity trading with a strong focus on packed pulses to serve institutional buyers, traders, and processing units.