Vipul Limited , a prominent real estate company, has announced a significant move to raise capital through a preferential share issue. The company's Board of Directors has given the green light for the issuance of up to 2.1 crore equity shares, marking a notable development in its financial strategy.

Key Details of the Preferential Issue

Approval Process and Important Dates

The proposed share issuance is subject to shareholder approval, which will be sought at an Extraordinary General Meeting (EGM) scheduled for March 29, 2024. Vipul Limited has outlined several key dates related to this process:

To ensure transparency and fairness in the voting process, the company has appointed M/s. AVA Associates as the scrutinizer for overseeing the e-voting proceedings.

Implications of the Share Issue

If approved by shareholders, this preferential issue could potentially inject Rs. 497.70 crore into Vipul Limited, based on the maximum number of shares proposed to be issued at the specified price. The influx of capital from non-promoter investors may provide the company with additional funds for various purposes, which could include debt reduction, working capital requirements, or funding new projects.

The move to issue shares to non-promoter investors may also lead to a change in the company's shareholding pattern, potentially broadening its investor base.

Shareholders and potential investors will be closely watching the outcome of the EGM and the subsequent developments related to this preferential issue. The success of this capital raise could have significant implications for Vipul Limited's financial position and future growth strategies in the real estate sector.

Vipul Limited , a prominent real estate company, has taken a significant step towards raising capital through a rights issue. The company's Right Issue Committee has given its approval to the Draft Letter of Offer, setting the stage for a potential influx of funds up to INR 49.75 crores.

Key Details of the Rights Issue

Approval Process and Next Steps

The Draft Letter of Offer, now approved by the Right Issue Committee, marks a crucial milestone in the company's fundraising efforts. Vipul Limited is set to submit this draft to both the BSE Limited and the National Stock Exchange of India Limited for their in-principle approval.

Pending Decisions

While the maximum fund-raising target has been set, some critical aspects of the rights issue remain to be finalized:

• Issue Price: Yet to be determined
• Rights Entitlement Ratio: To be decided

These important details will be determined by the Board of Directors at a later date, providing more clarity on the terms of the rights issue for the shareholders.

Committee Meeting Details

The Right Issue Committee convened on February 28, 2025, to deliberate and approve the Draft Letter of Offer. The meeting lasted from 4:00 p.m. to 4:30 p.m.

This rights issue represents a strategic move by Vipul Limited to strengthen its financial position. As the real estate sector continues to evolve, the additional capital could potentially support the company's growth initiatives and ongoing projects. Shareholders and market observers will be keenly awaiting further details on the pricing and entitlement ratio, which will be crucial in determining the attractiveness of this rights issue.