Vishal Fabrics shares in focus as company approves conversion of warrants

Vishal Fabrics Ltd., a homegrown company in the textile industry, has approved the conversion of 50 lakh warrants into shares. With this, the company has got a capital of about Rs 11 crore 47 lakh, which will be useful in the growth of the company in the coming time. The decision in this regard was taken its board meeting held on 23 April 2025.

Let us tell you that the company’s share was trading at Rs 26.92 per share with a rise of 0.71 per cent in the afternoon trade.

On September 12, 2024, the company had given 50 lakh warrants to a special investor, Multitude Growth Funds (formerly called AG Dynamic Funds Limited). These warrants were of the non-promoter category. Let us tell you that in the non-promoter category, there are such investors who are not connected with the internal part of the company.

At that time, the price of each warrant was fixed at Rs 30.60 and initially the investor paid Rs 7.65 per warrant (25 per cent of the total). Now the investor has also paid the remaining amount i.e. Rs 22.95 per warrant (75 per cent). In this way, now all these warrants have been converted into 50 lakh shares in equal numbers.

The company has received funding of Rs 11,47,50,000 through this entire process. This amount will help the company to expand its business, install new machines or invest in new technologies. This is a positive signal that big external investors have faith in the future of the company.

Now that 50 lakh new shares have come into the stock market, it can have an impact on the company’s stock. If the company performs well, the share price can go up. If there is volatility in the market, there can be pressure on the stock for some time.

According to experts, Vishal Fabrics has been sitting in a very tight range between 25.5 and 31.3 for the last four weeks. The base that is being formed may take another 2 to 4 weeks. But the volume pattern clearly indicates that the stock is being bought slowly.

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