Gujarat Hy Spin , a textile manufacturing company, has announced plans to raise ₹24 crore through a preferential share issue to non-promoter investors. The company will seek shareholder approval for this and other resolutions at an Extra-ordinary General Meeting (EGM) scheduled for October 11, 2025.

Increase in Authorized Share Capital

The company proposes to increase its authorized share capital from ₹16.75 crore to ₹22.75 crore by adding 60 lakh equity shares of ₹10 each. This increase is necessary to accommodate the new share issuance.

Preferential Share Issue Details

Gujarat Hy-Spin plans to issue 60 lakh equity shares at ₹40 per share, which includes a premium of ₹30 per share. The shares will be allotted to ten non-promoter investors. This move will significantly alter the company's shareholding structure:

Fund Utilization

The company has outlined the following plan for utilizing the funds raised:

Pricing and Valuation

The issue price of ₹40 per share is based on a registered valuer's report and complies with SEBI regulations. This price is higher than the volume-weighted average prices of the company's shares over the past 90 and 10 trading days, which were ₹24.23 and ₹25.97 respectively.

Regulatory Compliance

The preferential issue will be subject to various regulatory requirements, including:

• Lock-in periods for the allotted shares as per SEBI ICDR Regulations
• Approval from the stock exchange where the company's shares are listed
• Compliance with the Companies Act, 2013 and SEBI regulations

Impact on Control

While the issue will dilute the promoter shareholding, the company has stated that there will be no change in control or management as a result of this preferential issue.

The EGM will be held at the company's registered office in Gondal, Gujarat. Shareholders will vote on the resolutions for increasing the authorized share capital and approving the preferential share issue.

This capital raising initiative appears to be part of Gujarat Hy-Spin's strategy to optimize its power costs through solar energy investment, reduce debt, and strengthen its financial position for future growth.

Gujarat Hy Spin , a company listed on the BSE SME platform, has announced significant changes to its capital structure and a new preferential share issue. The company's board of directors, in a meeting held on September 11, 2025, approved several key proposals aimed at strengthening its financial position and expanding its shareholder base.

Capital Increase

The board has given its approval to increase the company's authorized share capital from ₹16.75 crore to ₹22.75 crore. This ₹6.00 crore increase will be achieved by creating an additional 60 lakh equity shares with a face value of ₹10 each. The move is subject to shareholder approval and other necessary regulatory clearances.

Preferential Share Issue

In a significant development, Gujarat Hy Spin has also approved a preferential issue of 60 lakh equity shares at ₹40 per share, which includes a premium of ₹30 per share. This issue is expected to raise ₹24.00 crore for the company. The shares will be allotted to ten non-promoter investors, expanding the company's investor base.

Key Investors and Allocations

The preferential issue includes notable allocations to several investors:

Post-issue, these new investors will collectively hold 26.37% of the company's equity.

Additional Board Decisions

The board has also made several other important decisions:

1. Appointment of M/s. Pooja Gala & Associates as compliance consultants for the preferential issue.
2. Scheduling of an Extraordinary General Meeting (EGM) for October 11, 2025, to seek shareholder approval for the proposed changes.
3. Approval of the EGM notice and related documents.
4. Appointment of M/s. Monika V Tyagi & Associates as scrutinizers for the e-voting process at the EGM.

Regulatory Compliance

The company has stated that the proposed preferential issue will be conducted in accordance with Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and other applicable rules and guidelines.

Gujarat Hy Spin's move to increase its capital and bring in new investors through a preferential issue could potentially provide the company with additional funds for its business operations and expansion plans. Shareholders and market observers will be keenly watching the outcome of the upcoming EGM and the subsequent implementation of these proposals.