News Corporate Actions Active Clothing Co Limited Board Approves ₹23 Cr Fund Raise via WarrantsActive Clothing Co Limited Board Approves ₹23 Cr Fund Raise via Warrants
Active Clothing Co Limited's board has approved issuing up to 20,00,000 warrants at ₹115 each to raise ₹23 Cr through a preferential issue. The allocation will be split equally between promoters and non-promoter investors. The funds will strengthen the company's capital base and support growth plans. The apparel manufacturer reported FY25 total income of ₹297.12 Cr, EBITDA of ₹28.49 Cr, and PAT of ₹8.45 Cr.
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Active Clothing Co Limited has announced board approval for a significant fund-raising initiative through the issuance of warrants. The leading apparel manufacturer, specializing in flat-knitted sweaters, jackets, and circular-knitted apparel for global fashion brands, plans to raise ₹23 Cr through this preferential issue.
Warrant Issue Details
The board has approved a comprehensive warrant issuance structure designed to strengthen the company's financial position:
| Parameter: | Details |
|---|---|
| Total Warrants: | Up to 20,00,000 warrants |
| Price per Warrant: | ₹115 |
| Face Value: | ₹10 per equity share |
| Total Fund Raise: | Up to ₹23 Cr |
| Payment Mode: | Cash |
Each warrant will be convertible into or exchangeable for one fully paid-up equity share of the company. The preferential issue will be made to both promoters and non-promoter investors, with a balanced allocation strategy.
Allocation Strategy
The company has structured the warrant allocation to maintain balanced stakeholder participation:
- Promoters and Promoter Group: 50% of total warrants (10,00,000 warrants)
- Non-Promoter Investors: 50% of total warrants (10,00,000 warrants)
This equal distribution approach ensures broad-based participation while maintaining promoter commitment to the company's growth trajectory.
Strategic Rationale
According to Managing Director Rajesh Mehra, the ₹23 Cr preferential issue represents a strategic step to strengthen the company's capital base and support the next phase of growth. The fund infusion is expected to:
- Enhance financial flexibility
- Improve balance sheet strength
- Enable pursuit of expansion opportunities
- Continue delivering value to global customers and stakeholders
Company Performance and Background
Active Clothing Co Limited operates as a premier apparel manufacturer based in Mohali, Punjab, serving leading global fashion brands including Levi's, George, Pepe Jeans, ONLY, Jack & Jones, Vero Moda, Next, Skechers, Guess, Puma, Ted Baker London, and Adidas.
| Financial Metric: | FY25 Performance |
|---|---|
| Total Income: | ₹297.12 Cr |
| EBITDA: | ₹28.49 Cr |
| PAT: | ₹8.45 Cr |
The company got listed on the BSE on March 26, 2018 with an IPO of ₹26.56 Cr. As India's leading fully integrated "design-to-shelf" solution provider, Active Clothing offers comprehensive services encompassing design, manufacturing, and retail operations.
Business Model and Capabilities
The company distinguishes itself through its tech-enabled design and manufacturing platform, which enhances efficiency and sustainability in product development. Key differentiators include:
- Virtual knitting and digital sampling capabilities
- Waste reduction and cost optimization solutions
- State-of-the-art integrated facility operations
- End-to-end quality control and faster turnaround times
Active Clothing's core product portfolio includes flat-knit sweaters, fly-knit shoe uppers, circular knits, outerwear jackets, and wovens. The company has expanded into new categories such as knitted beanies and gloves, soft-knitted toys, and athleisure products to strengthen its market presence.
Historical Stock Returns for Active Clothing Co
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.90% | +5.65% | +1.50% | -28.13% | -23.32% | +942.29% |
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