In a surprising twist during a sluggish trading session, Vishal Fabrics, a small-cap textile stock priced under ₹50, saw its shares rise on Thursday. This uptick occurred even as the broader Indian markets, including the Sensex, were down by approximately 0.2-0.3%. The recent news surrounding Vishal Fabrics has sparked interest among investors, suggesting a potential turnaround for the company.
Recent Developments at Vishal Fabrics
On April 23, 2024, Vishal Fabrics made headlines by announcing the conversion of 5 million warrants into an equivalent number of equity shares. This decision came during a meeting of the company’s Fund Raising Committee. The Board of Directors approved the allotment of these shares, each with a face value of ₹5, after receiving a substantial payment of ₹11.47 crores from Multitude Growth Funds (formerly known as AG Dynamic Funds Limited). These warrants were issued on a preferential basis at a price of ₹30.60 each, with the allottee exercising their rights to convert these into equity shares.
- Key Highlights:
- Conversion of 5 million warrants into equity shares.
- Each share has a face value of ₹5.
- Fund raised totaled ₹11.47 crores.
- Non-promoter investor: Multitude Growth Funds.
Share Price Insights
On Thursday, Vishal Fabrics’ share price opened at ₹26.72 on the BSE, showing little change from the previous day’s close of ₹26.71. However, the stock quickly climbed to an intraday high of ₹26.98, marking a gain of over 1%. This rise is noteworthy given the overall market’s downward trend, where the Sensex hovered around 0.2-0.3% lower.
- Share Price Movement:
- Opened at ₹26.72.
- Reached a peak of ₹26.98 during the day.
- Current trading is approximately 10% higher than lows of ₹23-24 seen in early March.
Despite facing challenges earlier in the year, Vishal Fabrics appears to be staging a comeback, attracting the attention of investors seeking opportunities in the textile sector. This movement in share prices and the recent developments indicate a renewed confidence in the company’s potential.
For additional insights, check out the latest updates on Adani Green and Axis Bank‘s quarterly results, which are also making waves in the market.
