Arvind Polycot Ltd, a company of Lalbhai Group, plans to hike its authorised share capital from around Rs 40 crore to Rs 75 crore to fund its expansion plans.
The new authorised capital of Rs 75 crore will comprise 2.50 crore equity shares of Rs 10 each, 25 lakh preference shares of Rs 100 each, and 2.50 crore unclassified shares of Rs 10 each. The current authorised capital is structured through 20,000 redeemable preference shares of Rs 100 each and 3.98 crore equity shares of Rs 10 each.
According to the company, this has been necessitated as it is in the process of expansion and the increase in share capital will also be used for general corporate purposes including capital expenditure, working capital requirements and strategic investments.
To meet the working capital and capital expenditure requirements of the company, the board of directors has considered it necessary to raise financial resources at an appropriate time by issue of 25 lakh preference shares of Rs 100 each amounting to Rs 25 crore.
The company has taken this step to part-finance its expansion which is on at its manufacturing unit near Ahmedabad. The company is setting up a world-class plant for manufacturing bottomweight fabrics .
The trial production is expected to be completed during the second quarter of the current fiscal. According to the company, with the commissioning of the new plant, Arvind Polycot will achieve a major landmark of having one of the most modern processing units in the world for bottomweight fabrics. However, full impact of this plant on the company's performance will be during the second half of the next financial year, the management added.
