7NR Retail Ltd's Rs16.33 crores rights issue to open on September 6

The funds raised through the issue will be utilised to meet the working capital requirements required to fund company's expansion plans, meeting working capital requirements and for general corporate purposes. Right issue is offered at a price of Rs 1.4 per share - 16.5 per cent discount to share price of Rs 1.68 per share on September 2 on BSE. Rights Issue closes on September 20, 2022.

The Company will issue 11,66,95,000 fully paid-up Equity Shares of face value of Rs 1 each for cash at a price of Rs 1.4 per Equity Share aggregating to Rs 16.34 crore on a rights basis to eligible equity shareholders in the ratio of 1:1 (1 Equity Shares for every 1 Equity shares fully paid-up Equity Share held by the Eligible Equity Shareholders of the Company, as on the record date). Last date for On-market Renunciation of Rights Entitlements is September 15, 2022.

Commenting on the development, Tarachand Gangasahay Agrawal, Managing Director, 7NR Retail Ltd said, "Company has taken important strategic initiatives in the recent past with a focus to expand product line, adding more channel partners etc. Our Company has started 2 new units in Ahmedabad at Vatva and Motera in the Segment of Retail Stores of Furniture, Garments and other products. Company has a mission is to develop the franchisee in different cities of India focusing more on Tier I and Tier II cities for expansion and to deliver superior quality to value to our customers, shareholders, employees and society at large. Proceeds of the issue will further strengthen company's balance sheet and help fund its strategic growth initiatives."

Additionally, the company also proposes to deploy the proceeds of the Rights Issue to meet general corporate purposes including brand building exercises and strengthening marketing capabilities, general maintenance, partnerships, tie-ups or contingencies in ordinary course of business and ongoing general corporate exigencies.

Incorporated in 2012, 7NR Retail Limited is engaged in the business of trading apparel in the Wholesale and Retail Segments. Company strives to focus on maintaining and reinforcing the image of its existing exclusive brand outlets under the brand name of "Gini & Jony" in kids' garments in the retail segment. Recently the Company has started business of Suiting and Shirting. Company's long-term focus continues to be investing in growth through new product launch, expanding retail footprints.

For FY22, company reported Total income of Rs 24.29 crore and Net profit to Rs 77 lakh. Promoter Group holding in the company is 27.23 per cent as on June 30, 2022. Post the rights issue, total outstanding shares of the company should increase to 23,33,90,000 equity shares from 11,66,95,000 equity shares as on June 2022.

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