Tile manufacturer Somany Ceramics Ltd's board has approved a plan to raise up to Rs 150 crore ($24 million) through issuance of securities, the company said in a stock market disclosure on Tuesday.
The firm did not share further information on the proposed fundraise but in an email response, the company's joint managing director Abhishek Somany told VCCircle that this is an enabling resolution and at an appropriate time during its validity the company may decide to raise capital through various routes. “Therefore it would be inappropriate for us to comment whether it will be by way of QIP/preferential allotment or others,” he said.
New Delhi-based Somany Ceramics manufactures ceramic wall and floor tiles and markets its tiles under brand names such as 'Somany', 'Durastone', 'Duragres', 'VC Shield' and 'Somany Express'. Founded by HL Somany in 1969 as Somany Pilkingtons, the firm has plants in Kadi (Gujarat) and Kassar (Haryana).
It is also present in the sanitaryware segment through the brand 'Acquaware'.
A year ago, Creador bought 4.34 million shares or 11.19 per cent stake in the public listed firm for $8 million through a preferential allotment.
Shares of Somany Ceramics closed at Rs 349.90 on Tuesday, down 2.67 per cent on BSE in a flat Mumbai market.
(Edited by Joby Puthuparampil Johnson)