Vipul Organics announces rights issue at 1:3, issue price of Rs 54 per share

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26 Aug, 2025 12:21

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Vipul Organics, a specialty chemicals company, has announced a rights issue offering one share for every three held as on record date at Rs 54 per share, according to a stock exchange filing on September 30.

The size of the issue is up to Rs 25 crore, and the funds realised through the issue of shares the development of a new facility in Sayakha, Gujarat. The company reported Rs 151 crore in revenue for FY 2023-24.

Vipul P Shah, Managing Director, Vipul Organics said, "The company has undertaken substantial capacity expansion and has decided to do a rights issue to mobilise funds. With a view to reward our shareholders and to include them in the growth of the company, the issue price is at a substantial discount to the current market price."

Shares of Vipul Organics were higher by 12% in the session on September 30, and are higher by 50% on YTD basis. The market capitalisation of the company is around Rs 340 crore.

Vipul Organics just concluded its capacity expansion at its Ambernath facility, and construction is underway at its greenfield facility at Sayakha, Gujarat.

The record date for the rights issue is expected to be announced later, said the company.

The dyes and pigment sector is crucial in enhancing packaging materials’ aesthetics and With rising paperboard packaging, there is an increasing demand for dyes as well. The Indian dyes and pigments sector accounts for almost a quarter of the world market, and is projected to grow at a CAGR of 11% between 2024 and 2032, according to a report by Claight.