Greenlam Industries’ share price rose more than 11 percent on June 20 after the board of directors approved an issuance of shares to Smiti Holding and Trading Company worth Rs 195 crore. It is a small-cap company in the building materials category. Greenlam is the largest laminate player in the country, with a market share of 18 percent in the organized domestic market. Greenlam Industries is one of the top three laminate manufacturers in the world and Asia, with a production capacity of 15.62 million sheets per year with the largest decorative veneer capacity of 4.2 million square meters.
“The Board of Directors has approved the issuance of up to 6.31 million shares, each with a nominal value of Re 1, of the Company to Smiti Holding and Trading Company Private Limited, a Qualified Institutional Buyer, as amended on a preferential basis at a price of Rs 309 per share added up to Rs 195 crore,” Greenlam said in an exchange request.
It is subject to the approval of regulatory/statutory authorities and the company’s shareholders. The issue will also be subject to customary closing conditions between the investor and the company.
The board convenes an extraordinary general meeting on July 16 to obtain the necessary approval from the members for the issuance.
Smiti Holding and Trading Company Private Limited is 100 percent ultimately owned by Mr. Jalaj Ashwin Dani and Ms. Vita Jalaj Dani.
In February 2022, the company had broken down the par value of the company’s shares from Rs 5 each to Re 1 each.
At 11:32 am, the stock was trading 8.61 percent higher against Rs 324.25 compared to a 0.03 percent rise in the S&P BSE Sensex. It had reached a 52-week high of Rs 415.90 on April 19, 2022.
Meanwhile, for the fourth quarter ended March 31, 2022 (Q4FY22), the company’s consolidated net income grew 11.6 percent, to Rs 463 crore, compared to Rs 415 crore in the corresponding quarter of the previous year. financial year, thanks to an improvement in the product mix and price increases.
While the laminate and related products business grew 15.9 percent in value year-over-year, volumes declined due to temporary restrictions at the Behror plant in January 2022 and ongoing logistical challenges. Operating profit fell 26.1 percent at Rs 49.6 crore. The company’s net profit fell 17 percent year-on-year to Rs 25.7 crore.
“However, growth in the reported quarter was partially impacted by temporary restrictions at the Behror plant due to Commission for Air Quality Management (CAQM) guidelines in January and ongoing logistical challenges. Margins continued to be under pressure due to continued increases in raw material prices and challenges in the supply chain,” the company said.
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