Rushil Decor shares jump 6% today; here's why

Shares of Rushil Decor surged during Friday's trading session on the back of a couple announcements made by the company. The company informed about the decisions through separate exchange filings with the bourses.

In the first announcement, the board of directors of Rushil Decor, informed that it has decided to enhance the outlay of its Gujarat project up to Rs 90 crore from Rs 60 crore due to increase in proposed capacity of the project.

The company is setting up a new green field unit in the vicinity of existing laminate plants in Gujarat for manufacture of decorative laminates including bigger size laminates having aggregate installed capacity of 1.2 million sheets per annum, whose initial outlay was Rs 60 crore.

The company board has also approved to issue 42 lakh convertible warrants to investors from promoter/promoter group and non-promoter shareholders at issue price of Rs 297 apiece amounting to Rs 124.74 crore, said Rushil Decor in a separate exchange filing with the bourses. Each warrant can be converted into one equity share of the company.

Investors applying for the warrants need to pay 25 per cent at the time of application, while the remaining sum of 75 per cent shall be paid at the conversion of warrants into equity shares. Investors have a period of 18 months from the date of allotment to for the conversion of warrants. The company will hold its EGM on November 18 for approval of this preferential issue.

Following the announcements, shares of Rushil Decor surged over 6 per cent to Rs 358.80 on Friday, with a total market capitalization of over Rs 930 crore. However, the stock has settled at Rs 337.75 in the previous trading session on Friday.

Rushil Décor, an Ahmedabad-based Laminate and MDF panel boards industry players in India, has a global footprint in more than 50 countries. Incorporated in 1993, Rushil Decor markets its product under the flagship brand named VIR.

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