This Small-Cap Stock Threads In Rs 516 Cr Fresh Capital From Global Investors Despite FIIs Sell-Off

Vishal Fabrics Ltd. has raised a substantial Rs 516.38 crore by successfully converting 2.25 crore warrants into equity shares. Through a preferential issuance, the shares, which were issued at Rs 30.60 each (plus a premium of Rs 25.60), were handed out to prestigious institutional investors in the public category. Together, the three investors—NEXPACT Limited, Eminence Global Fund PCC (Eubilia Capital Partners Fund I), and Vikasa India EIF I Fund-now collectively hold 9.09% of the company's expanded equity base. Each has paid the final amount in full, which is Rs 22.95 per share.

Vishal Fabrics Ltd. has raised a total of Rs 51.63 crore by converting 2.25 crore warrants into an equivalent number of equity shares. Eminence Global Fund PCC-Eubilia Capital Partners Fund I received 75 lakh shares (Rs 17.21 crore), Vikasa India EIF I Fund will receive 1 crore shares (Rs 22.95 crore), and NEXPACT Limited will receive 50 lakh shares (Rs 11.47 crore). This signifies the successful completion of the preferential allotment and reaffirms the strong institutional investor's belief in the company's future potential. All outstanding warrants have now been fully converted.

"We wish to inform you that Fund raising Committee of the Board of Directors of the Company in their meeting held on today i.e. Wednesday, August 06, 2025 , inter-alia, considered and approved the allotment of 22500000 equity shares having face value of Rs. 5/- each, at an issue price of Rs.30.60/- each (including a premium of Rs. 25.60/- each), to the following person belonging to the "Non-Promoters/Public Category", consequent upon the conversion of 22500000 Warrants issued at an Issue Price of Rs. 30.60 /-each on preferential basis, upon receipt of amount aggregating to Rs. 51,63,75,000/- (Rupees Fifty One Crores Sixty Three Lakhs Seventy Five Thousand only) at the rate of Rs. 22.95/- (Rupees Twenty-Two and Ninety-Five Paise only) per warrant from the allottees," said Vishal Fabrics in a stock exchange filing.

"Pursuant to members approval, these warrants were allotted, in terms of SEBI (ICDR) Regulations, 2018 to "Non-Promoter, Public Category", on preferential basis, at an Issue Price of Rs. 30.60/- per warrant on payment of Rs. 7.65/- (Rupees Seven and Sixty-Five Paise only) per warrant, being 25% of the Issue Price, entitling the warrants holders to get their warrants converted into equal number of Equity Shares of the Company by paying remaining 75% i.e., Rs. 22.95 /- per warrant within 18 months from the date of warrants allotment. Consequent to today's conversion of warrants/allotment of Equity Shares, the issued and paid-up capital of the Company stands increased to Rs. 123,80,50,015/- consisting of 24,76,10,003 equity shares of Rs. 5/- each," said Vishal Fabrics in a regulatory filing on Wednesday.

Vishal Fabrics, a small-cap firm, made this move even though FPIs were big sellers in the Indian market in July. In July, they sold share values of Rs 31988 crores via exchanges.

In terms of financials, Vishal Fabrics' net profit jumped by 69.04% to Rs 8.08 crore in the June 2025 quarter, compared to Rs 4.78 crore in the June 2024 quarter. Compared to the previous quarter, which ended in June 2024, when sales were Rs 339.92 crore, sales in the quarter ending in June 2025 increased 16.84% to Rs 397.17 crore.