Asian Granito stock falls 5% as firm announces rights issue

Asian Granito stock fell nearly 5% intraday today after the company engaged in luxury surface and bathware solutions announced the details of its  Rs 441-crore rights issue.

The stock has fallen after four days of consecutive gain. The microcap stock touched an intraday low of Rs 112.35, falling 4.79% to Rs 112.35 on BSE.

Shares of Asian Granito stand higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages.

The share has lost 31% in one year and fallen 17.28% since the beginning of this year. Total 2.08 lakh shares of the firm changed hands amounting to a turnover of Rs 2.41 crore on BSE.  Later, the share ended 1.86% lower at Rs 115.80.

Market cap of the firm fell to Rs 657.18 crore.  The company said it would open its Rs 441- crore rights issue on April 25, 2022.

The proceeds of the issue will be utilised to fund expansion plans, set up three manufacturing facilities at Morbi, Gujarat in luxury surfaces and bathware segments, including GVT tiles, sanitaryware and SPC flooring, setting up "one of India's largest display centres", funding the working capital requirements of new projects and general corporate purposes, the company said.

Share Market updates: Sensex falls 575 pts, Nifty ends below 17,650; Titan, HDFC, HDFC Bank top losers

Shares will be offered at a price of Rs 63 a share, a 46.6 percent discount to the closing price of Rs 118 on April 6, on NSE, it added. The issue will close at May 10.

The firm will issue approximately 7,00,00,000 fully paid-up equity shares of the face value of Rs 10 each for cash at a price of Rs 63 a share (including a premium of Rs 53) aggregating to Rs 441 crore on a rights basis.

"AGL has lined up major expansion plans in Morbi region in Gujarat, keeping in mind strategic locational advantages, proximity to the raw material sources, easy and quick availability of manpower, proximity to some of the country's largest ports among others," said Kamlesh Patel, Chairman and Managing Director, Asian Granito India.

The rights entitlement ratio for the share sale has been set at 37:30-eligible shareholders will be entitled to 37 shares of Rs 10 each of the company for every 30 shares of Rs 10 each held by them as on the record date. The company has fixed April 12 as the record date.

Asian Granito India Limited is an India-based ceramic wall and floor tile manufacturing company. The company's product portfolio includes ceramic wall and floor tile, glazed vitrified tiles, polished vitrified tiles, composite marble and quartz, Grestek Marblex, outdoor tiles, marble and quartz, bath ware, faucet, high definition (HD) polish porcelain, and antibacterial tiles. Its product portfolio consists of 1,400 designs which are categorized into various series and available in multiple sizes.