Gujarat Natural Resources Launches Rs. 48.15 Crore Rights Issue

Gujarat Natural Resources Limited, an Indian oil and gas company, opens a Rs. 48.15 crore rights issue to fund subsidiary investments, repay borrowings, and support corporate needs. The issue offers shares at a discount and allows on-market rights renunciation until December 17, 2024. Revenue and profits showed significant growth last fiscal year.

Gujarat Natural Resources Limited (BSE: 513536) is set to launch a rights issue aimed at raising Rs. 48.15 crore to bolster its financial footing and strategic initiatives. The company, entrenched in the upstream oil and gas sector, will open its rights issue on December 12, closing on December 20.

The offering will comprise 4,81,50,987 shares priced at Rs. 10 each, below the recent market price of Rs. 17.74. Investors can buy these entitlements from the BSE, with the last day for exchanging rights set for December 17, 2024. Managed by the Shah family, Gujarat Natural Resources has a diversified interest portfolio, spanning steel, power, and chemicals.

Proceeds from the issue will be allocated towards investing Rs. 20 crore in a subsidiary, Rs. 20 crore for debt repayment, and the remaining Rs. 7.15 crore for corporate uses. The company's revenue and profit margins have shown robust growth, with consolidated revenue up by 93.29% and profit after tax rising by 37.41% in the last fiscal year. This financial decision marks a key step in strengthening its position within the industry.

(With inputs from agencies.)