Tembo Global Industries Limited Rs. 3616.56 Lakhs Rights Issue to open for subscription
Trading of Rights Entitlements will begin from 22nd August, 2022 to 29th August, 2022 on NSE; Company's Rights Issue opens on 22nd August, 2022 and closes on 05th September, 2022
NAVI MUMBAI, India, Aug. 29, 2022 /PRNewswire/ -- Tembo Global Industries Limited ("Tembo" or "the Company"), manufacturer of Pipe Support System having a global presence, is opening its Rights Issue for subscription of its shareholders. The issue opens on 22nd August, 2022 and closes on 05th September, 2022. The Company is raising INR 3616.56 Lakhs through the Rights Issue to fund its working capital requirements and repayment of its certain outstanding borrowings. Equity Shares under the Rights Issue are offered at a price of INR 100 per Share (including premium of INR 90 per share) i.e. 20% discount to the closing share price of INR 125 per share on 18thAugust, 2022 on NSE. Online Trading of the Rights Entitlements allotted to eligible shareholders is available on NSE between 22nd August, 2022 and 29th August, 2022
Commenting on the development, Mr. Sanjay Jashbhai Patel, Managing Director, Tembo Global Industries Limited, said, "Tembo is India's hub for pipe support system solution products and UL & FM certified products and accounts for more than 65% of the country's total production, housing over 2MT of production per day. Tembo Global Industries Limited has lined up major expansion plans in Virar region in the state of Maharashtra, keeping in mind strategic locational advantages, proximity to the raw material sources, easy & quick availability of manpower, proximity to some of the country's largest ports, among others. Upon the execution of the proposed plans, Tembo Global Industries Limited is expected to strengthen its position as an integrated one destination for all construction needs and Pipe Support System Solutions products and up the Company's margin profile in near to medium term."
The Company has purchased land admeasuring 16000 sq. meters; which will increase production capacity to more than 400%.
The Company has estimated that net working capital requirement in Fiscal 2022-23 will be around INR 7424.80 Lakhs, for which Company is planning to utilise around INR 1909.24 Lakhs out of the Rights Issue Proceeds.
Additionally, the Company also proposes to deploy the proceeds of the Rights Issue to meet general corporate purposes including other strategic initiatives, brand building and strengthening, marketing activities, and ongoing general corporate exigencies.
Highlights of Key Strategic Initiatives and Milestones achieved in FY 2021-22:-
Company Address: Plot No. PAP-D – 146/147 TTC Industrial Estate, MIDC, Turbhe, Sanpada Road Opp. Balmer Lawrie Van Leer Co. Turbhe, Navi Mumbai – 400 705 Maharashtra- India
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