This microcap garments & apparels stock has zoomed 130% in 6 trading days
Source: Business Standard
Virat Industries share price was locked in the 10-per cent upper circuit for a sixth straight day, at Rs 299.10 on the BSE in Friday’s intraday trade, amid heavy volumes after investor Bhavook Tripathi announced an open offer to acquire up to 3.7 million equity shares or 25.45 per cent stake from the public shareholders at an offer price of Rs 158 per share.
In the last six trading days, the stock of the microcap garments and apparels company has zoomed 130 per cent after the company announced its fundraising plan by issuing equity shares on preferential basis to Tripathi.
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On Tuesday, September 24, Virat Industries’ board approved the allotment of 9.6 million equity shares to Bhavook Chandraprakash Tripathi on preferential issue and private placement basis at a per share price of Rs 104 each for an aggregate cash consideration of Rs 99.84 crore.
Post allotment, Bhavook Tripathi will hold 66.1 per cent stake in Virat Industries, up from ‘nil’ holding previously. Bhavook Tripathi shall have the right to appoint a Chairman and directors of the Company on completion of the proposed transaction, the company said.
As on June 30, 2024, Bhavook Tripathi held 29.03 per cent stake in R Systems International, a company engaged in providing software product development and BPO services, the shareholding pattern data shows.
Meanwhile, the average trading volume on Virat Industries counter jumped nearly 10-fold today. Till 10:45 AM, as many as 221,000 shares had changed hands and there were pending buy orders for 51,173 shares on the BSE, exchange data shows.
Currently, Virat Industries is trading under the ‘X’ group on the BSE. ‘X’ group has equity securities of those companies that are only listed/traded on the BSE and satisfy certain parameters into separate sub-segments called ‘X’, and ‘XT’. At the time of the review, any securities falling in the Trade-for-Trade segment (‘DT’ or ‘T’ groups) are classified under ‘XT’ sub-segment.
Virat Industries manufactures premium quality dress and sport socks, for export to various geographies of the world. Such socks are patronised by reputed brands and are sold in top end overseas markets. The socks are made with numerous attractive shades and fashion designs for men, ladies and kids. Superior quality of yarn spun from combed cotton, BCI cotton and organic cotton with nylon, high bulk polyester and elastane are used to make such socks.
The company also manufactures exclusive quality sports socks for niche overseas markets. Such socks are exported for various football clubs in the UK and Europe. These are specialised socks and fetch higher prices.
If the Free Trade Agreement between India and other overseas countries are fully implemented, there will be a saving of 10.6 per cent import duty to overseas customers purchasing goods from India. This will boost exports from India. It will be a level playing field for India like other members of the European Union, Virat Industries said in its FY24 annual report.
Significant developments are taking place in preparation of fancy yarns in India – both cotton and manmade. This offers opportunity to weaving and knitting manufacturers to seize the opportunity and go for value added products for export and local markets. Extension of the scheme for Rebate of State and Central Taxes and Levies (RoSCTL) till March’26 for the export of apparel, garment and made ups with the same rates would benefit textile companies, the company said.
First Published: Sep 27 2024 | 11:44 AM IST
