Zodiac Clothing Company Limited (ISIN: INE206B01013) has announced a series of strategic moves aimed at strengthening its financial position and leadership structure. The company has issued a postal ballot notice seeking shareholder approval for multiple resolutions, including a preferential issue of equity shares to its promoter group.

Preferential Issue Details

The company plans to raise approximately Rs 14.99 crores through the issuance of 14.64 lakh equity shares at a price of Rs 102.43 per share to members of the promoter group. This move is intended to support the company's growth plans and general corporate purposes.

Fund Utilization

The funds raised from this preferential issue are earmarked for:

1. Capital expenditure to support growth plans: Rs 11.25 crores
2. General corporate purposes: Rs 3.74 crores

Leadership Changes and Reappointments

In addition to the preferential issue, the postal ballot notice includes resolutions for:

1. Re-appointment of S.Y. Noorani as Managing Director for a period of three years
2. Appointment of Mohamed Musaed Abu Nasr Noorani as a Non-Executive Director

Financial Position

An analysis of Zodiac Clothing's consolidated balance sheet reveals some interesting trends:

The company has experienced a decline in total assets and equity over the past three years, while seeing an increase in current liabilities. The proposed preferential issue may help in improving the company's financial position and supporting its growth initiatives.

Shareholders will vote on these resolutions through a postal ballot, with the e-voting period set from December 5, 2025, to January 3, 2026. The results are expected to be announced on or before January 5, 2026.

As Zodiac Clothing navigates through challenging market conditions, these strategic moves aim to strengthen its financial foundation and leadership structure, potentially positioning the company for future growth and improved performance.

Zodiac Clothing Company Limited, a prominent player in the Indian clothing industry, has received a credit rating update from CRISIL Ratings Ltd. The company's total bank loan facilities, amounting to Rs 53 crore, have been assigned a CRISIL BB/Stable rating, indicating a moderate degree of safety regarding timely servicing of financial obligations.

Rating Details

CRISIL Ratings has provided the following assessment for Zodiac Clothing Company's bank facilities:

Breakdown of Bank Facilities

The rated amount includes both existing and proposed fund-based facilities from various banks:

Rating Implications

The CRISIL BB rating suggests that Zodiac Clothing Company has moderate risk with regard to timely payment of financial obligations. The 'Stable' outlook indicates that the rating is likely to remain unchanged in the near term.

Disclosure

The company disclosed this information to the National Stock Exchange of India Ltd. and BSE Limited in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

It's important to note that while this rating provides an indication of the company's financial health, investors and stakeholders should consider it as one of many factors in their decision-making process. The rating does not constitute a recommendation to buy, sell, or hold any financial instruments issued by the company.

Zodiac Clothing Company Limited continues to navigate the competitive clothing industry landscape, and this rating may influence its ability to secure future financing and impact investor perception.