On Monday, April 28, 2025, the stock market witnessed a remarkable surge in Vishal Fabrics, a small-cap textile firm, which saw its shares soar over 13% during intraday trading. This impressive rise followed the company’s recent announcement regarding a significant acquisition, igniting interest among investors and analysts alike.
Vishal Fabrics’ Strategic Acquisition
In a pivotal move, Vishal Fabrics disclosed that it has successfully acquired 528,100 equity shares of Nandan Industries Pvt Ltd for ₹123 per share, based on a formal valuation report. This acquisition, amounting to approximately ₹6.49 crore, was finalized on the same day, marking a strategic expansion for Vishal Fabrics.
- Current Ownership: Post-acquisition, Vishal Fabrics will hold 35.41% of the equity share capital in Nandan Industries, an increase from its previous stake of 23.17%.
- Associate Company Status: Nandan Industries has been classified as an “Associate Company” of Vishal Fabrics since March 29, 2024.
Purpose Behind the Acquisition
The primary goal of Vishal Fabrics in acquiring these additional shares is to bolster its business development and enhance operational capabilities. This strategic move signifies the company’s commitment to expanding its market presence and improving its overall business model.
Insights into Nandan Industries Pvt Ltd
Nandan Industries is a well-established entity in the textile sector, specializing in the manufacturing and processing of various fabrics. The company engages in:
- Weaving
- Bleaching
- Dyeing
- Mercerizing
- Printing and sizing of yarn and fabrics
With an authorized share capital of ₹6.81 crore, Nandan Industries comprises 50,40,000 equity shares and 17,75,000 preference shares, reflecting a robust financial structure. For the fiscal year ending March 31, 2024, the company reported an impressive turnover of ₹226.04 crore, underscoring its operational success.
Vishal Fabrics’ Stock Performance
The stock performance of Vishal Fabrics has been noteworthy, opening at ₹25.86 and reaching a high of ₹29.25 during the trading session, representing an overall gain of more than 13% from the previous day’s closing price of ₹25.85. The stock ultimately settled at ₹28.72, closing with a substantial rise of over 11%.
This acquisition and the positive movement in share prices reflect a growing confidence in Vishal Fabrics’ strategic direction. As the company continues to expand its foothold in the textile industry, stakeholders are keenly watching its next steps.
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