Primary Market     

Published: April 30, 2024
Updated: April 30, 2024

Ashapuri Gold Ornament Ltd.

Right issue by Ashapuri Gold Ornament opens on May 8

The rights Issue closes on 27th May, 2024. The company will issue 8,33,28,666 fully paid-up equity shares of the face value of Rs. 1 each for cash at a price of Rs. 5.85 per equity share (including a premium of Rs. 4.85 per equity share) aggregating to Rs. 48.74 crore. The rights entitlement ratio for the proposed issue is fixed at 1:3 (1 equity shares of face value of Rs. 1 each for every 3 equity shares of Rs. 1 each held by the equity shareholders on the record date – April 18, 2024). The last date for on-market renunciation of rights entitlements is 21st May, 2024.

Commenting on the development, Dinesh Kumar Soni, Managing Director, Ashapuri Gold Ornament Ltd said, “The company has taken important strategic initiatives in the recent past with a focus to expand production capacities, launching new product lines and collections for different markets. Our long-term focus continues to be investing in team development, participating In India’s largest exhibitions like IIJS Premiere, Signature and Tritiya Shows, and foray further into strengthening our footprint in the southern markets, Proceeds of the issue will further strengthen the company’s balance sheet and help fund its expansion plans and strategic growth initiatives.”

The company’s board of directors on April 10, 2024 approved the issuance of equity shares by way of a rights issue to eligible equity shareholders for an amount not exceeding Rs 48.74 crore. Post the rights issue, total outstanding shares of the company should increase to 33,33,14,666 equity shares from 24,99,86,000 equity shares prior to the rights issue.

Ashapuri Gold Ornament Limited, one of the leading manufacturers and wholesalers of gold ornament has been in the business for over 28 years and has been a trailblazer in the gold jewellery industry. With a manufacturing unit spanning 14,000 square feet in Ahmedabad and a branch office in Bangalore.

The company offers a range of collections catering to various customer segments, from the high-end connoisseurs to the discerning mid-market shoppers. The company has three collections named “MAAYIN”, “KAAVIS” & “ARZISH” which caters to diverse customer segments from high end to mid-markets and value market segment. The company’s product range includes necklace, bangles, bridal jewellery, choker, pendant set etc. Its premium collection includes - Pota Jewellery and Kundan Jewellery.