Oriental Trimex Ltd's Rs. 48.51 crore Rights Issue opens from September 19



Oriental Trimex Ltd, a leading processor and trader of natural stones in India will open Rs. 48.51 crore Rights issue for subscription on September 19, 2024. The funds raised through the right issue will be utilised to fund company's expansion plans including Capital Expenditure for setting up additional Machinery for Marble Block in Tamilnadu, Development of quarry of ‘JET BLACK’ Granite in Odisha, Capital Expenditure for construction of Showroom-cum-warehouse, meeting the working capital requirements, debt repayment and for general corporate purposes. Right issue of the company are offered at a price of Rs. 11 per share as compared to closing share price of Rs. 16.90 per share on 18 Sep. 24. Rights Issue will close on 27 September, 2024.

The Company will issue 4.41 crore fully paid-up Equity Shares of the face value of Rs. 10 each for cash at a price of Rs. 11 per Equity Share aggregating to Rs. 48.51 crore. The Rights entitlement ratio for the proposed issue is fixed at 3:2 (3 Rights equity shares of face value of Rs. 10 each for every 2 fully-paid equity share held by the equity shareholders on the record date - September 5, 2024). The last date for On-market Renunciation of Rights Entitlements is till 24 September, 2024

The company has unveiled strategic initiatives aimed at enhancing its operations, expanding market reach, and strengthening financial stability. These developments reflect its strong focus on innovation, growth, and delivering exceptional customer satisfaction.OTL is set to introduce India’s first wire-based gangsaw machine, sourced from Changsha Beto, China. This advanced machine, featuring diamond-coated cables for precise cutting. The new technology will reduce waste, improve durability, and increase cutting speed by three times compared to traditional methods, positioning OTL as a leader in high-end residential and commercial stone solutions. 

OTL is launching a 21,000 sq. ft. showroom in Greater Noida by September 2024, showcasing a wide range of premium marbles and granites. OTL also plans to expand further with a new showroom in Delhi after its upcoming Rights Issue.

 OTL has secured a 30-year lease for a Jet Black Granite Quarry in Malkangiri, Orissa. Valued at approximately INR 258.77 crores, the quarry will become operational after receiving environmental clearance by November 2024. This will boost OTL’s revenue and export potential, strengthening its position in the natural stone industry.From December 2024, OTL will diversify its offerings with new products, including low-cost Indian granites, designed porcelain tiles, nano stones from China, and marble-designed quartz. 

These additions will cater to a broader market, especially in Tier 2 and Tier 3 cities under India’s Smart City plan, driving growth across various customer segments. OTL has made a significant payment of INR 38.25 crores to Edelweiss ARC as part of a One-Time Settlement, drastically reducing its debt. With a small remaining interest expected to be cleared by September 2024, OTL is on the verge of becoming debt-free, enhancing its financial stability and market credibility.

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