India Glycols Ltd Considers Issuance of Equity Shares and Convertible Securities to Boost Growth

India Glycols Ltd Plans Capital Raising Through Equity and Convertible Securities

India Glycols Limited has announced that its board will consider proposals for offering and allotting equity shares and/or convertible securities to raise funds. This could include instruments such as global depository receipts (GDRs), American depository receipts (ADRs), convertible bonds, or warrants, among others, subject to approvals from regulatory authorities.

The proposed issuance, which may be made in one or more tranches within prescribed limits, aims to strengthen the company’s financial position and support its expansion and diversification plans. India Glycols seeks shareholder authorization to create, offer, and allot these securities both in domestic and international markets.

Key Highlights

The total amount to be raised through this issuance or combined offerings may go up to INR 250 crore or equivalent in foreign currency.

Securities may be issued at prices determined by regulatory pricing formulae and could include discounts as allowed by law.

The issue may include equity shares issued on conversion of these securities, which will rank pari-passu with existing equity shares.

The board will have full authority to finalize the terms, timing, and pricing of the offer, in consultation with regulators and advisors.

Proceeds from the issue are intended for funding working capital, capital expenditure, debt repayment, or other corporate purposes.

Important Points

The decision is subject to shareholder approval in upcoming meetings and final regulatory clearances.

India Glycols previously conducted a 2:1 stock split and dividend payouts, signaling strong financial health and shareholder focus.

The issuance broadens the company’s capital-raising avenues in a flexible manner to optimize financial strategy.

Any unsubscribed securities may be disposed of as per applicable laws and board discretion.

The move aims to position India Glycols for sustained growth in the volatile chemical and renewable energy markets it operates in.

India Glycols Ltd’s proposal to issue equity and convertible securities marks a strategic step to dynamically manage capital and fuel future expansion, reaffirming its commitment to evolving market demands and shareholder value creation.

Sources: NSE India, India Glycols Ltd Investor Presentation, SEBI Filings.