You are here: Home » Markets » News
Business Standard

Greenlam surges 11% as board approves Rs 195-cr preferential issue to QIB

The board has approved issuance of up to 6.31 million equity shares to Smiti Holding and Trading Company Private Limited at a price of Rs 309 per share aggregating to Rs 195 crore

Buzzing stocks | Markets

SI Reporter  |  Mumbai 

Greenlam shares gain after board approves 5-for-1 stock split

Shares of Greenlam Industries surged 11 per cent to Rs 330.40 on the BSE in Monday's intra-day trade after its board approved fund raising of Rs 195 crore by issuing shares to qualified institutional buyer (QIB) on preferential basis.

At 10:46 am, the stock was trading 8 per cent higher at Rs 323 as compared to 0.03 per cent rise in the S&P BSE Sensex. It had hit a 52-week high of Rs 415.90 touched on April 19, 2022.

"The board has approved issuance of up to 6.31 million equity shares, having face value of Re 1 each, of the company to Smiti Holding and Trading Company Private Limited, a qualified institutional buyer, as amended on a preferential basis at a price of Rs 309 per share aggregating to Rs 195 crore," Greenlam said in an exchange filing. READ MORE

The preferential issue is subject to the approval of regulatory/statutory authorities and the shareholders of the company, it added.

Smiti Holding and Trading Company Private Limited is 100 per cent ultimately beneficially owned by Mr. Jalaj Ashwin Dani and Mrs. Vita Jalaj Dani.

Greenlam is among the world's top 3, Asia's largest, and India's No. 1 surfacing solutions brand. The company offers end-to-end surfacing solutions spread across decorative laminates, compact laminates, Interior, and exterior clads, restroom cubicles & locker solutions, decorative veneers, engineered wooden floors and doors.

In February 2022, the company had subdivided the face value of the equity shares of the Company from Rs 5 each to Re 1 each.

Meanwhile, for the fourth quarter ended on March 31, 2022 (Q4FY22), the company's consolidated net revenues from operations witnessed a growth of 11.6 per cent, at Rs 463 crore, as compared to Rs 415 crore in the corresponding quarter of the previous financial year, owing to improvement in product mix and price hike.

While Laminate & allied business grew by 15.9 per cent year on year (YoY) in value terms, volumes declined due to temporary restrictions at the Behror plant in the month of January 2022 and continued logistics challenges. Operating profit declined by 26.1 per cent at Rs 49.6 crore. The company's net profit declined 17 per cent YoY at Rs 25.7 crore.

"However, growth in the reported quarter was partially impacted owing to temporary restrictions at the Behror Plant on account of CAQM guidelines (Commission for Air Quality Management) in the month of January and continued logistic challenges. Due to continuous increase in the prices of raw materials and supply chain challenges, the margins remained under pressure," the company said.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, June 20 2022. 11:03 IST