Ultracab (India) Ltd's Rs.4981 Lakh Rights Issue Opened For Subscription On January 28, 2025

PNN
Rajkot (Gujarat) [India], February 1: Rs.4981 lakh Right Issue of Ultracab (India) Ltd (BSE-538706) engaged in the manufacturing and exporter of electric wires and cable opened for subscription from January 28, 2025. Right issue of the company are attractively priced at a Rs.14.5 per share and will close on February 11, 2025.
Highlights:
* The Shares in Right issue priced at Rs. 14.5 per share
* The Company recorded Net Profit of Rs. 598 lakh for FY24 and Revenue of Rs. 12439 lakh
* Promoters Nitesh Vaghasiya and Pankaj Shingala have confirmed to subscribe to the full extent of their Rights and Entitlements
* The Company also exports in countries like the UK, UAE, Africa, Singapore, Uganda, etc.
* The company has been supplying cables to 55+ government departments and 150+ corporate groups for over a decade, with 400+ dealers across India and a presence in 29 countries.
* The Company's clients include BHEL, NTPC, Power Grid, Airport Authority, BPCL, ONGC, and SAIL. Vedanta, Hindustan Zinc, Sterlite Power, Aditya Birla, Reliance, Airtel, Godrej among others.
Investors may also buy Ultracab (India) Ltd Rights Entitlements (BSE Symbol: 750951) from BSE to participate / subscribe in the company's right issue. The last date for On-market Renunciation of Rights Entitlements is till 5 February 2025.
The Rights entitlement ratio for the issue is fixed at 9:25 (9 Rights equity shares for every 25 equity share held by shareholders on the record date - January 16, 2025). The Company will issue 3.43 crore fully paid-up Equity Shares at a price of face value of Rs. 2 each. .
For the FY24 ended March 2024, Net profit of the company increased to Rs. 598 lakh as compared to the net profit of Rs. 582 lakh in the corresponding period last year. Revenue of the company during FY24 was reported at Rs. 12439 lakh as compared to the revenue of Rs. 10767 lakh in FY23.
The funds raised through the right issue will be utilized for the pre-payment / repayment of Loan, For augmenting the working capital requirements of the Company, and for General Corporate Purposes.
Nitesh Vaghasiya, Chairman & Managing Director, Ultracab (India) Ltd said, "Our Rights Issue reflects our commitment to responsible growth, financial resilience, and sustainability. By empowering existing shareholders to expand their stake, we honor their trust and loyalty while securing vital funds for strategic expansion and acquisitions that align with our vision for sustainable and environmentally responsible growth. These milestones reaffirm our dedication to quality, innovation, and a customer-first approach. Looking ahead, we will build on this momentum by prioritizing sustainability, digital transformation, and targeted product and market expansions. Our focus remains on creating long-term stakeholder value and driving sustained growth."
About Ultracab (India) Ltd
Founded in 2007, Ultracab (India) Ltd is a Gujarat-based manufacturer and exporter of high-quality electric wires and cables, serving domestic, industrial, solar, and elevator applications. Renowned for reliability, the company leverages advanced technology and rigorous quality control to ensure superior products. Company is supplying cables to 55+ government departments and 150+ corporate groups for over a decade, with 400+ dealers across India and a presence in 29 countries."
Promoters Nitesh Vaghasiya and Pankaj Shingala have confirmed to subscribe the full extent of their Rights Entitlements and have also confirmed that they shall not renounce the Rights Entitlements. The other promoters and members of the promoter group have agreed to renounce their entitlement in favour of Nitesh Vaghasiya & Pankaj Shingala for 33,65,192 Shares. Therefore, Total Promoter Right Entitlement 95,82,881 Shares will be subscribed.
Company offers wide product portfolio of 6000 plus products including domestic cables (house wires, PVC/XLPE power cables), international cables (auto cables, welding cables), and specialized cables (super flat, elevator, and solar cables). With a state-of-the-art manufacturing facility in Shapar (Rajkot, Gujarat), Ultracab remains committed to excellence and innovation in the cable industry. Company's products are sold not only in India but also in countries like the UK, UAE, Africa, Singapore, Uganda, etc. Company's government clientele includes BHEL, NTPC, Power Grid, Airport Authority, BPCL, ONGC, SAIL. Its corporate client includes the likes of Vedanta, Hindustan Zinc, Sterlite Power, Aditya Birla, Reliance, Airtel, Godrej among others.
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