Tuni Textile Mills Limited , a player in the Indian textile industry, has taken a significant step towards raising capital through a rights issue. The company recently published pre-issue advertisements in national newspapers, marking an important milestone in its fundraising efforts.

Rights Issue Details

Tuni Textile Mills has announced a rights issue to its eligible equity shareholders, with the following key details:

Advertisement Publications

As part of its regulatory obligations, Tuni Textile Mills has published pre-issue advertisements in the following national newspapers:

1. Financial Express (English) - All Editions
2. Jansatta (Hindi) - All Editions
3. Lakshadweep (Marathi) - Maharashtra Edition

These publications are in line with the company's commitment to transparency and adherence to SEBI regulations.

Regulatory Filings

Tuni Textile Mills has duly informed the BSE about these newspaper publications. This communication is in compliance with:

• Regulation 84 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018
• Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Additional Information

The company has made the pre-issue advertisement available on its official website ( www.tunitextiles.com ), ensuring easy access for all stakeholders.

This rights issue represents a significant move for Tuni Textile Mills, potentially strengthening its financial position and providing resources for future growth initiatives. Investors and market watchers will likely keep a close eye on the progress of this capital raising effort and its impact on the company's future prospects in the competitive textile industry.

Tuni Textile Mills Limited has unveiled plans for a significant rights issue and released its financial results for the second quarter. The company's board has approved a rights issue aimed at raising Rs 42.32 crore, while also reporting a modest profit for Q2.

Rights Issue Details

The board of Tuni Textile Mills has approved a rights issue of 42,32,44,440 equity shares at a price of Re. 1 per share. This move is set to inject Rs 42.32 crore into the company, assuming full subscription. Key details of the rights issue include:

The rights issue represents a significant expansion of the company's equity base, with the number of outstanding shares potentially more than quadrupling if fully subscribed.

Q2 Financial Performance

For the quarter ended September 30, Tuni Textile Mills reported the following unaudited financial results:

The company's performance shows a positive net profit, albeit modest in comparison to its revenue. The substantial inventory and trade receivables figures suggest a focus on maintaining stock and managing credit sales.

Management's Perspective

Narendra Kr. Sureka, Managing Director of Tuni Textile Mills, stated in the company's disclosure, "The rights issue is a strategic move to strengthen our capital base and support our growth initiatives. We believe this will provide our shareholders with an opportunity to increase their stake in the company at an attractive price."

Market Implications

The rights issue, priced at par value, offers existing shareholders an opportunity to increase their holdings without a premium. This could be seen as a value proposition for current investors, but it also implies a significant dilution of ownership if not fully subscribed.

The company's decision to raise capital through a rights issue, rather than other means, suggests a preference for maintaining control within the existing shareholder base while bolstering its financial position.

Investors and market watchers will likely keep a close eye on how this capital raise impacts Tuni Textile Mills' future operations and financial performance, particularly in light of the modest profit reported in the recent quarter.

As the textile industry continues to face challenges and opportunities in the evolving economic landscape, Tuni Textile Mills' move to strengthen its capital structure could be pivotal in positioning itself for future growth and competitiveness in the market.