Kitex Garments Limited’s Board of Directors has approved a fundraising initiative to raise up to ₹3,000 Crores. This capital will be sought through various permissible modes, including Qualified Institutional Placements (QIP), equity shares, non-convertible debentures with warrants, or other convertible securities. The move aims to strengthen the company’s financial position and support future growth strategies, with terms to be determined by the Board or a committee.
Board Approves Major Fundraising Initiative
Kitex Garments Limited announced today that its Board of Directors has considered and approved a significant fundraising plan. The company intends to raise an aggregate amount not exceeding ₹3,000 Crores (Rupees Three Thousand Crores only) or an equivalent sum. This strategic move is designed to bolster the company’s financial resources and enable future expansion and operational enhancements.
Diversified Funding Instruments
The fundraising will be executed through various permissible modes, offering flexibility and market responsiveness. These include the issuance of equity shares, non-convertible debentures along with warrants, and any other eligible securities that are convertible into equity shares of the Company. A combination of these instruments may also be utilized. The Board or any duly constituted committee will determine the specific terms and conditions of these issuances.
Qualified Institutional Placement (QIP) and Other Modes
A primary avenue for this fundraising will be through Qualified Institutional Placements (‘QIP’), adhering to the provisions of Chapter VI of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and relevant sections of the Companies Act, 2013. The company may also explore other permissible modes or a combination thereof, as deemed appropriate under applicable laws. The issuance can occur in one or more tranches, subject to necessary regulatory and shareholder approvals.
Determining Issue Terms
The precise terms of these issuances, including pricing and any associated premiums, will be determined by the Board of Directors or a committee authorized by the Board. These decisions will be made at an appropriate time and in accordance with the approvals obtained from the company’s shareholders, ensuring compliance with all applicable legal frameworks.
Source: BSE
