Rajapalayam Mills Ltd. updates on fund raising for expansion project.

The Board of Directors ("Board") of Rajapalayam Mills Ltd. at their meeting held on 30-10-2021 had given their approval for Capacity addition of 166 Nos. of Looms and establishment of Fabric finishing process with a capacity of 50,000 meters per day at an estimated Project cost of Rs. 330 Crores. The mode of finance will be term loan / equity capital / other sources as may be decided by the Board from time to time.

In addition to the above, the Board, in their subsequent meetings had also approved other Capital expenditure proposals for modernizing the Spinning Mills, establishment 110 KVA substation to cater the power requirement of proposed Fabric processing Unit, expanding the capacities of Two for One (TFO) machine capacity and the total Project Cost stands revised as Rs. 430 Crores.

The Company has tied up necessary Term Loans from Banks. To part fund the projects, the Board, at their meeting held on 27-01-2022 had given its approval for raising of funds by way of Rights issue of Equity Shares upto the value of Rs. 60 Crores. Now, for funding the balance amount of projects and the incremental cost of modernization, the Board at their meeting held today (23-2-2022) has decided to sell further investments held by the Company in the shares of M/s. The Ramco Cements Limited upto a value of Rs. 80 Crores.

Term Loan from Banks - Rs. 280 crores

Raising of Fund through Equity - Rs. 60 crores.

Sale of M/s. The Ramco Cements Limited Shares to M/s. Ramco Industries Limited (inter-se transfer among Promoter) * - Rs. 10 crores

Sale of M/s. The Ramco Cements Limited Shares to Public in single or multiple tranches - Rs. 80 crores.

EQUITYBULLS