Oriental Trimex, a leading processor and trader of natural stones in the country, announced that the company is raising Rs 48.51 crore through right issue. The subscription to the rights issue will open of September 19 and close on September 27, 2024. The company will issue up to 4.41 lakh equity shares at price of Rs 11/- per share (including a premium of Re 1/- per equity shares) on a rights basis to the eligible equity shareholders in the ratio of three equity shares for every two fully paid-up equity shares held by the eligible equity shareholders. The company had fixed record date as September 05, 2024. Beetal Financial & Computer Services is the registrar to the issue.
Part of the right issue would be used by the company to repay its unsecured loans and working capital requirement. Also, funds will be used for setting up additional machinery for marble block in Tamil Nadu and development of Jet-Black quarry granite in Odisha.
The company had recently made a payment of Rs 38.25 crore to Edelweiss Asset Reconstruction Company Limited as part of a One-Time Settlement (OTS) agreement entered into on January 30, 2024. This payment has substantially reduced OTL's debt obligations, putting the company on the path to becoming debt-free.
Elaborating on the development Rajesh Punia, Chairman of OTL said, "With only a nominal interest amount remaining, which is expected to be paid by September 2024, we are on the verge of achieving debt-free status. This development is expected to enhance the company's credibility and reputation among stakeholders, further strengthening its position in the industry."
Recently, the company had secured a 30-year lease for a Jet-Black Granite Quarry spanning 12.260 acres (4.961 hectares) in Village Poteru, Malkangiri district, Orissa. This quarry, allocated by the Government of Orissa, is a significant addition to OTL's portfolio, boasting a massive deposit of decorative stones and Jet Black-coloured granite with substantial export potential.
The mining plan for the quarry has been approved by the state government, with an independent valuation by Er M K Mehta estimating the total mineral deposit value at approximately INR 258.77 crores. With the Environmental Clearance (EC) expected by November 2024, OTL plans to operationalize the quarry shortly thereafter. This development is expected to significantly boost the company's revenue and profitability, further cementing its leadership in the natural stone industry.
Further, In an effort to enhance its customer offerings and create new revenue streams, Oriental Trimex plans to diversify its product portfolio by venturing into additional related product lines.
