7NR Retail Ltd’s Rs. 16.33 crores Rights Issue to open on September 6

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Ahmedabad (Gujarat) [India] : 7NR Retail limited, manufacturers of a leading Kids wear Brand ‘Gini & Jony’ based in Ahmedabad is scheduled to open its Rs. 16.33 crore rights issue on September 6, 2022.

The funds raised through the issue will be utilised to meet the working capital requirements required to fund company’s expansion plans, meeting working capital requirements and for general corporate purposes. Right issue is offered at a price of Rs. 1.4 per share – 16.5% discount to share price of Rs. 1.68 per share on September 2 on BSE. Rights Issue closes on September 20, 2022.

The Company will issue 11,66,95,000 fully paid-up Equity Shares of face value of Rs. 1 each for cash at a price of Rs. 1.4 per Equity Share aggregating to Rs. 16.34 crore on a rights basis to eligible equity shareholders in the ratio of 1:1 (1 Equity Shares for every 1 Equity shares fully paid-up Equity Share held by the Eligible Equity Shareholders of the Company, as on the record date). Last date for On-market Renunciation of Rights Entitlements is September 15, 2022.

Commenting on the development, Mr. Tarachand Gangasahay Agrawal, Managing Director, 7NR Retail Ltd said, “Company has taken important strategic initiatives in the recent past with a focus to expand product line, adding more channel partners etc. Our Company has started 2 new units in Ahmedabad at Vatva and Motera in the Segment of Retail Stores of Furniture, Garments and other products. Company has a mission is to develop the franchisee in different cities of India focusing more on Tier I and Tier II cities for expansion and to deliver superior quality to value to our customers, shareholders, employees and society at large. Proceeds of the issue will further strengthen company’s balance sheet and help fund its strategic growth initiatives.”

Highlights:-

Funds raised through the issue will be used to meeting working capital requirements for the company’s business activities, general corporate purposes including strengthening marketing, brand building etc

The rights entitlement ratio for the proposed rights issue is 1:1; i.e one rights equity shares of Rs. 1 each for every 1 equity shares held by the equity shareholders

Company has fixed August 23 as record date for the purpose of determining the equity shareholders entitled to receive the rights entitlement in the rights issue

For FY22, company reported Total income of Rs. 24.29 crore and Net profit to Rs. 77 lakh

 

Additionally, the company also proposes to deploy the proceeds of the Rights Issue to meet general corporate purposes including brand building exercises and strengthening marketing capabilities, general maintenance, partnerships, tie-ups or contingencies in ordinary course of business and ongoing general corporate exigencies.

 

Incorporated in 2012, 7NR Retail Limited is engaged in the business of trading apparel in the Wholesale and Retail Segments. Company strives to focus on maintaining and reinforcing the image of its existing exclusive brand outlets under the brand name of “Gini & Jony” in kids’ garments in the retail segment. Recently the Company has started business of Suiting and Shirting. Company’s long-term focus continues to be investing in growth through new product launch, expanding retail footprints.

For FY22, company reported Total income of Rs. 24.29 crore and Net profit to Rs. 77 lakh. Promoter Group holding in the company is 27.23% as on 30 June 2022. Post the rights issue, total outstanding shares of the company should increase to 23,33,90,000 equity shares from 11,66,95,000 equity shares as on June 2022.



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