Ahmedabad-based denim fabric maker Nandan Denim Ltd has raised Rs 50 crore (over $7.5 million) through an issue of fully convertible warrants to UK-based foreign institutional investor Polus Global Fund, as per a stock market disclosure.
Nandan Denim has issued 2.5 million fully convertible warrants that will be converted into equity shares at Rs 200 per share within 18 months.
In a disclosure to BSE in September, the company had said, "The conversion price of Rs 200 per share is at over 70 per cent premium to Friday, September 18 closing price of Rs 115.50 per share on BSE and 250 per cent premium to the book value of Rs 57 per share.” The company had first disclosed the proposed issue in September.
Polus Global Fund also owns stake in Indian firms such as Zee Learn, Omaxe, Archies, ERA Infra, Gujarat Apollo Industries and IDFC.
Nandan Denim had started operations in 1994 with textile trading and forayed into textile manufacturing in 2004. It is currently engaged in manufacturing of denims, cotton fabrics and khakis.
As on September 30, the promoters of the company held 60.94 per cent equity stake, while the remaining is held by the public shareholders.