| Total Issue Size | ₹174.20 CrEquity & Warrants |
|---|---|
| Issue Price | ₹335Per Share/Warrant |
| Market Cap | ₹939.17 CrTextiles Sector |
| Revenue TTM | ₹683.32 CrOperating Income |
Key highlights
- Preferential issue of 35,00,000 equity shares at ₹335 per share totaling ₹117.25 crore
- Issuance of 17,00,000 convertible warrants at ₹335 each aggregating to ₹56.95 crore
- Total fund raise size of ₹174.20 crore approved by the Board of Directors
- Key share investors include Clarus Capital I, Kritagyata Trust, and Emerge Capital Opportunities Scheme
- Extraordinary General Meeting (EGM) scheduled for October 24, 2026, to seek member approval
What Is the Fund Raise?
The fundraising exercise is structured in two distinct tranches. First, the company will issue up to 35,00,000 equity shares with a face value of ₹10 each at a premium of ₹325, bringing the total issue price to ₹335 per share. This component targets non-promoter identified persons and is expected to raise ₹117.25 crore.
Second, the board approved the issuance of 17,00,000 warrants convertible into an equal number of equity shares at the same price of ₹335 per warrant, aiming for an additional ₹56.95 crore. The warrants include a significant allocation to 81 investors, including a specific category for employees, and are subject to shareholder approval during the upcoming Extraordinary General Meeting on October 24, 2026.
Strategic Rationale
- Strengthening the capital base to support long-term working capital requirements
- Broadening the institutional and non-promoter shareholding through strategic allocations
- Enhancing liquidity to facilitate potential expansion in the textile manufacturing segment
- Providing an incentive structure for employees through participation in the warrant issuance
- Aligning the company’s capital structure with its growth trajectory in the domestic apparel market
Business Overview
Swaraj Suiting Limited operates within the textile industry, specializing in the manufacturing of high-quality fabrics and garments. The company’s core operations include the production of synthetic fabrics, denim, and various suiting materials. With a focus on both domestic and export markets, Swaraj Suiting has established a robust manufacturing infrastructure in Rajasthan.
The firm manages a diverse portfolio across the textile value chain, from weaving to finishing, catering to various fashion and apparel brands. Recent financial performance indicates a strong growth path, with annual operating revenue reaching ₹576.74 crore, a 39.89 percent year-on-year increase.
Financial and Industry Context
The fund raise occurs as Swaraj Suiting maintains a Price-to-Earnings ratio of 17.5, which is lower than the industry average of 38.29. The company has demonstrated consistent top-line growth, with TTM net profit standing at ₹61.15 crore. Within the Indian textile sector, there is a growing trend toward capacity expansion driven by the China Plus One strategy and government incentives like the PLI scheme.
This capital infusion of ₹174.20 crore represents approximately 18 percent of the company's current market capitalization, providing significant headroom for balance sheet optimization and financing upcoming infrastructure projects in the competitive apparel and accessories segment.
| Share price | ₹355.5 |
|---|---|
| Market capitalisation | ₹939.17 |
| Revenue (annual) | ₹576.74 |
| Net profit (annual) | ₹53.68 |
| P/E (TTM) | 17.5×Sector 55.71× |
| Promoter holding | 64.69%-0.26% QoQ |
| FII holding | 0.22%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Swaraj Suiting Limited announcing the outcome of the Board Meeting regarding a preferential issue of equity and warrants. Market figures from a third-party data provider.
Track Swaraj Suiting live
Get the next Swaraj Suiting filing on Telegram seconds after it lands. 15 days free.
