Gujarat Cotex to raise nearly Rs 43 cr through rights issue

Textiles and hospitality group Gujarat Cotex Ltd plans to raise nearly Rs 43 crore through a rights issue to fund its expansion projects, according to a statement. The rights issue comprises more than 8.54 crore equity shares at a price of Rs 5 per share, aggregating to Rs 42.73 crore, the statement said on Monday. The rights issue, which opened on April 10, will close for subscription on May 8. The company is offering six rights equity shares for every one fully paid-up equity share held by existing shareholders, the Silvassa-based company said. Proceeds from the rights issue will be used to support the company's expansion plans, including an upcoming premium hotel project, and strengthen its financial position, the statement said. Textile manufacturing firm Gujarat Cotex has also forayed into real estate, hospitality and agri-commodity trading verticals.

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