Apparel manufacturer Active Clothing Co Limited, one of India’s leading design-to-shelf solution providers, has announced that its Board of Directors has approved a preferential issue of warrants aimed at strengthening the company’s capital base and supporting future growth.
The company, which specialises in flat-knitted sweaters, jackets and circular-knitted apparel for global fashion brands, said the Board has approved the issuance of up to 20,00,000 warrants. Each warrant will be convertible into, or exchangeable for, one fully paid-up equity share with a face value of Rs. 10 (US $ 0.11). The warrants will be issued at a price of Rs. 115 (US $ 1.25) each, payable in cash, aggregating to a total issue size of up to Rs. 23 crore (US $ 2.51 million).
According to the company, the preferential issue will be made to promoters, members of the promoter group and select non-promoter investors. Half of the total warrants proposed will be allotted to promoters and the promoter group, with the remaining 50% allocated to non-promoter investors.
The proceeds from the warrant issue are expected to reinforce the company’s balance sheet, improve financial flexibility and support planned expansion initiatives, while enhancing long-term value for stakeholders.
Rajesh Mehra, Managing Director of Active Clothing Co Limited, said the preferential issue represented a strategic move to strengthen the company’s financial position and support the next phase of growth. He added that the capital infusion would improve balance sheet strength and enable the company to pursue expansion opportunities, while continuing to deliver value to its global customers and stakeholders.
