Le Merite Exports Ltd has approved a dual capitalraising initiative to strengthen its financial position and support strategic growth. The company will issue 10,37,000 convertible warrants and 86,400 equity shares, both priced at ₹320 each, aggregating to ₹36.3 crore.
Key Transaction Details:
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The 10,37,000 convertible warrants will be allotted on a preferential basis to nonpromoter investors. Each warrant is convertible into one equity share within 18 months from the date of allotment.
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The 86,400 equity shares will be issued immediately, also on a preferential basis, enhancing liquidity and expanding the public float.
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The issue price of ₹320 represents a premium over the current market price, which hovered around ₹314–₹317 during the announcement week.
Strategic Implications:
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Funds raised will be deployed toward debt reduction, working capital enhancement, and capacity expansion in the textile and apparel segments.
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The move aligns with Le Merite’s broader goal of migrating to the NSE main board and scaling its branded portfolio, including the Orijean denim line.
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Promoter holding stands at 62.22% as of March 2025, with no pledges, indicating strong internal confidence.
Market Reaction:
Shares rose 2.5% postannouncement, reflecting investor optimism about the company’s growth trajectory and capital discipline.
Sources: NSE India, Moneycontrol, Screener.in, Ticker Finology, Sharekhan.