Vipul Organics, a leading specialty chemicals firm, has announced a rights issue, offering one share for every three held as of the record date, priced at Rs 54 per share, according to a stock exchange filing on September 30. The issue size is up to Rs 25 crore, with the proceeds earmarked for the development of a new facility in Sayakha, Gujarat. The company reported revenue of Rs 151 crore for FY 2023-24.
Vipul P Shah, Managing Director of Vipul Organics, stated, “We have undertaken significant capacity expansion and decided to issue rights shares to raise funds. To reward our shareholders and include them in the company’s growth, the issue price is set at a considerable discount to the current market price.”
Following the announcement, Vipul Organics’ shares rose by 12% on September 30 and are up by 50% year-to-date, bringing the company’s market capitalisation to approximately Rs 340 crore. The company recently completed a capacity expansion at its Ambernath facility, with ongoing construction at its greenfield project in Sayakha, Gujarat. The record date for the rights issue will be announced soon.
In the broader context, the dyes and pigments industry plays a key role in enhancing packaging aesthetics. With the rise in paperboard packaging, demand for dyes is growing. India’s dyes and pigments sector, which holds around 25% of the global market, is projected to expand at a CAGR of 11% between 2024 and 2032, as per a report by Claight.
Vipul Organics is an Indian-based chemical manufacturing company specializing in the production of high-quality pigments, dyes, and intermediates. Established in 1972, the company has become a prominent player in the global chemical industry, serving sectors such as textiles, plastics, inks, paints, and coatings.
Vipul Organics is known for its commitment to sustainability, consistently focusing on environmentally friendly manufacturing processes and innovative chemical solutions. With state-of-the-art facilities and a strong emphasis on research and development, the company delivers products that meet international standards, catering to customers across more than 50 countries.
