Rajapalayam Mills Limited Rights Issue (Rajapalayam Mills Rights Issue 2022) Detail

Rights Issue Timetable

Rajapalayam Mills Limited is part of the South India-based Ramco Group, incorporated in 1936 and founded by P. A. C. Ramasamy Raja. The Company is engaged in the business of manufacturing cotton yarn ranging from 4s to 355s (single/double yarn) and fabrics. Presently, it has four manufacturing facilities for cotton yarn and one manufacturing facility for fabric.

The Company manufactures a wide range of products like Open End yarn, Ring yarn, Compact yarn, TFO yarn, Gassed yarn, Mercerised yarn, Slub yarn, Multi Count yarn, Melange yarn, Dyed High Twist yarn, Core Spun yarn, and Eli twist yarn. Their products are tailor-made to cater to specific customer needs. They sell their products in domestic and international markets.

The Company is also engaged in the generation of electricity from windmills. It has an aggregate installed capacity of 35.15 megawatts (MW) of wind power facilities, which it uses for its captive consumption. This helps the Company to control its power costs.

Objects of the Issue:

The company intends to utilize the gross proceeds raised through the Issue to part finance the following objects:

1. Capital expenditure for enhancement of fabric division capacity comprises of (i) installation of additional 166 looms ("Looms Expansion") and (ii) installation of fabric finishing infrastructure ("Fabric Processing");
2. Capital expenditure for modernization of existing spinning capacity; and
3. Capital expenditure for setting up of electrical infrastructure capacity to support existing and proposed infrastructure