Vipul Organics Limited , a key player in the chemical industry, has successfully completed its preferential issue of equity shares to non-promoters, resulting in dilution of promoter shareholding. The company's Board of Directors approved the allotment of 13,05,400 equity shares on December 22, raising approximately Rs 27.50 crore.

Promoter Shareholding Dilution

Following the equity allotment to non-promoters, the promoter group's shareholding has been diluted from 68.64% to 63.94%. The promoter group, led by Vipul Pravinchandra Shah and including Vipul P Shah (HUF), Kavita Javadsha Varaiya, Mita Vipul Shah, Mihir Vipul Shah, Vatsal Vipul Shah, and Niloni Mihir Shah, filed a disclosure under Regulation 29(2) of SEBI Takeover Regulations on December 24.

Revised Fund Utilization Plan

Due to non-participation by some proposed allottees, Vipul Organics revised the amount towards utilization of issue proceeds while maintaining the same objectives approved by shareholders. The company informed BSE about the revised utilization plan under Regulation 30.

Allotment Details

The preferential issue, which received in-principle approval from BSE earlier, was originally planned for up to 16,70,000 equity shares. However, the final allotment was reduced to 13,05,400 shares due to non-participation by some proposed allottees. The shares were allotted at Rs 211 per share to 9 non-promoter investors.

Key Allottees

The preferential issue was subscribed by 9 non-promoter investors, with notable allocations including:

Regulatory Compliance

The promoter group clarified that they have not acquired any shares in the company, and the change in shareholding is purely due to dilution from the equity allotment to non-promoters. As a measure of compliance and caution, the promoters filed the disclosure despite the passive nature of the change. The company confirmed that there are no changes in objects and other terms as approved by shareholders in the extraordinary general meeting held on October 31. Company Secretary Mansi Shah signed the regulatory filing submitted to BSE on December 22.

Vipul Organics Limited , a key player in the Indian pigment industry, is set to expand its production capacity and diversify into membrane manufacturing technology. This strategic move aims to strengthen the company's position in the domestic and global markets.

Expansion of Pigment Production

Vipul Organics plans to commission a new Greenfield facility in Sayakha, Gujarat, which is expected to increase its pigment production capacity. The company aims to scale up from its current 2,000 tonnes per year to nearly 10,000 tonnes annually. This five-fold increase in capacity is anticipated to enhance the company's competitiveness, particularly against Chinese manufacturers.

Diversification into Membrane Manufacturing

In a move to diversify its product portfolio, Vipul Organics is venturing into membrane manufacturing technology. This decision leverages the expertise of Dr. Vatsal Shah, who recently completed his Ph.D. in membrane technology from Imperial College London. The company aims to address a gap in the Indian market, which currently relies heavily on imported membranes from the US, Korea, and China.

Financial Performance

Vipul Organics has shown growth in recent years. Here's a look at the company's key financial metrics:

The company has demonstrated growth across key financial parameters, with improvements in profitability metrics.

Future Outlook

With the new Sayakha plant expected to commence operations in approximately 12 weeks, Vipul Organics anticipates an improvement in its EBITDA. The increased production capacity is expected to reduce costs and enhance the company's ability to compete with international players, particularly those from China.

The entry into membrane manufacturing represents a strategic diversification that could open up new revenue streams for the company. By offering membranes at competitive prices, Vipul Organics aims to capture a share of the growing domestic market for these products.

As Vipul Organics continues to expand its production capacity and diversify its product range, it is positioning itself in both the pigment industry and the emerging field of membrane technology in India. The coming months will be crucial as the company operationalizes its new facility and establishes its presence in the membrane market.