Cricket stars Rohit Sharma and Tilak Verma will invest in the preferential issue of smallcap multibagger shares

Cricket legend and former India captain Rohit Sharma along with emerging talent Tilak Verma are among the 198 proposed allottees who will receive shares in Swaraj Suiting’s preferential issue. The allocation list also includes Satosh Venkateshwaran Iyer, father of Shreyas Iyer, and Kolkata Knight Riders coach Abhishek Mohan Nayar of the cricket association.Each of the four will receive 11,000 shares each, according to the company’s latest regulatory filing. Swaraj Suiting has proposed to issue 43,76,500 equity shares on a preferential basis at Rs 236 each, a fundraise that would raise Rs 103.28 crore, subject to approval by shareholders and regulators.

Besides the equity issue, the company plans to roll out 67,97,000 convertible warrants priced at Rs 236 each. These warrants – worth Rs 160.40 crore – will be issued to the promoter group and select investors, pending approval. Once converted, they will add an equal number of shares, significantly increasing the share capital of the company.The company has also submitted several other resolutions to shareholders. These include a proposal seeking approval to offer loans or guarantees of up to Rs 75 crore to entities in which directors may have an interest.

Moreover, Swaraj Suiting is looking to increase its borrowing capacity to Rs 1,000 crore, which will allow it to exceed the existing limit linked to paid-up capital and free reserves.

The company’s shares ended 7.85% higher at Rs 272.85 apiece on the NSE on Wednesday. The stock has generated nearly 900% returns over the past three years, making it one of the standout small-cap performers. It currently has a market capitalization of around Rs 550 crore. In today’s session, volumes were high as 3 lakh shares changed hands. This is significantly higher than the monthly average of 69,000 shares. Also read: Maruti Suzuki zooms past five-year underperformance against the sector with a 47% YTD gain. Can it break the 2017 82% barrier?

Swaraj Suiting operates across the textile value chain, producing denim and cotton fabrics used in undergarments and home textiles. The facilities handle processes ranging from yarn dyeing and weaving to finishing, supplying fabrics to a range of larger textile companies.

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