Greenlam Industries Share price rose over 11 per cent on June 20 after the board approved an issue of shares to Smiti Holding and Trading Company worth Rs 195 crore. It is a small-cap company in the building material category. Greenlam is the country’s largest laminate player, with an 18 per cent share of the organised domestic market. Greenlam Industries is one of the top three laminate producers in the world and Asia, with a production capacity of 15.62 million sheets per year with the largest decorative veneer capacity of 4.2 million square metres.
“The board has approved issuance of up to 6.31 million equity shares, having face value of Re 1 each, of the company to Smiti Holding and Trading Company Private Limited, a qualified institutional buyer, as amended on a preferential basis at a price of Rs 309 per share aggregating to Rs 195 crore,” Greenlam said in an exchange filing.
It is subject to the approval of regulatory/statutory authorities and the shareholders of the company. The issue will also be subject to customary closing conditions between the investor and the company.
The board is convening an extraordinary general meeting on July 16 to seek the necessary approval of the members for the issuance.
Smiti Holding and Trading Company Private Limited is 100 per cent ultimately beneficially owned by Mr Jalaj Ashwin Dani and Mrs Vita Jalaj Dani.
In February 2022, the company had subdivided the face value of the equity shares of the Company from Rs 5 each to Re 1 each.
At 11:32 am, the stock was trading 8.61 per cent higher at Rs 324.25 as compared to 0.03 per cent rise in the S&P BSE Sensex. It had hit a 52-week high of Rs 415.90 touched on April 19, 2022.
Meanwhile, for the fourth quarter ended on March 31, 2022 (Q4FY22), the company’s consolidated net revenues from operations witnessed a growth of 11.6 per cent, at Rs 463 crore, as compared to Rs 415 crore in the corresponding quarter of the previous financial year, owing to improvement in product mix and price hike.
While Laminate & allied business grew by 15.9 per cent year on year (YoY) in value terms, volumes declined due to temporary restrictions at the Behror plant in the month of January 2022 and continued logistics challenges. Operating profit declined by 26.1 per cent at Rs 49.6 crore. The company’s net profit declined 17 per cent YoY at Rs 25.7 crore.
“However, growth in the reported quarter was partially impacted owing to temporary restrictions at the Behror Plant on account of CAQM guidelines (Commission for Air Quality Management) in the month of January and continued logistic challenges. Due to continuous increase in the prices of raw materials and supply chain challenges, the margins remained under pressure,” the company said.
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