Kerala-based Kitex Garments Ltd announced on Friday (August 14) its plan to raise up to ₹3,000 crore through a qualified institutional placement (QIP), with the board approving the fundraising proposal on the same day. According to reports from CNBC TV18, the company stated that the proposed issue could comprise equity shares, non-convertible debentures along with warrants, other eligible securities convertible into equity shares, or a combination of these securities.
The securities may be issued in one or more tranches, subject to applicable laws, regulatory and statutory approvals and the approval of the company's shareholders. As reported by CNBC TV18, the final terms of the issue, including the price or prices, will be determined by the board or a duly constituted committee. The fundraising is subject to regulatory and shareholder approvals before proceeding.
Alongside the QIP announcement, Kitex Garments revealed plans to invest ₹1,000 crore in Telangana, marking a strategic shift in the company's expansion strategy. According to latest reports, this investment represents a significant move as the company alleges harassment by officials in Kerala, prompting the relocation of operations to Telangana. The company is known for manufacturing children's clothing worldwide and operates as one of the world's largest manufacturers of clothing for newborns and children.
Shares of Kitex Garments Ltd ended at ₹134.40, down by ₹4.35, or 3.14%, on the BSE on Friday. As reported by CNBC TV18, the stock decline occurred following the announcement of the fundraising plans, reflecting market reaction to the company's capital raising initiative. Despite the market dip, the company continues to maintain its position as one of the world's largest manufacturers of clothing for newborns and children.
