Small-cap stock below ₹50 Vishal Fabrics edges higher despite weak trends in Indian stock market

Small-cap stock below ₹50, Vishal Fabrics, edged higher in the morning trade on Friday, May 30, despite a weak trend in the Indian stock market. 

The gains in Vishal Fabrics come following a fundraising update by the company post-market hours on Thursday.

Vishal Fabrics Board Meeting Updates

Vishal Fabrics informed exchanges yesterday about the Board meeting outcome regarding fundraising. 

The Fundraising Committee's meeting pertained to the conversion of 69,32,824 warrants into an equal number of equity shares of the company.

Vishal Fabrics had intimated on September 12, 2024, with respect to the allotment of warrants and in the same context. 

Vishal Fabrics said that the Fundraising Committee of the Board of Directors of the company, at their meeting held on Thursday, May 29, 2025, considered and approved the allotment of equity shares having a face value of ₹5/- each, upon part conversion of 69,32,824 warrants. This is out of a total of 1,50,00,000 warrants applied by Elysian Wealth Fund (formerly known as Silver Stallion Limited) under the non-promoter, public category. 

The warrants have been approved to be issued by Vishal Fabrics at an issue price of ₹30.60/- each, on preferential basis, upon receipt of amount aggregating to ₹15.91 crore at the rate of Rs. 22.95/- per warrant from the allottee under the exercise of their rights of conversion into equity shares.

According to a release by Vishal Fabrics, these warrants were granted to "Non-Promoter, Public Category" on a preferential basis with a price of ₹30.60/-per warrant upon payment of ₹7.65/- per warrant, which is 25% of the issue price. 

This gives the warrant holders the right to convert their warrants into an equal number of equity shares of the company by paying the remaining 75%, or ₹22.95/-per warrant, within 18 months of the date of warrants allotment.

Vishal Fabrics share price movement

Small-cap stock below ₹50, Vishal Fabrics share price, opened at ₹30 on the BSE on Friday, almost flat over the previous day's closing price of ₹30.04. The small-cap stock rose to an intraday high of ₹30.50, marking gains of 1.5% on a day when the Indian stock market was weak and the Sensex was down around 0.25%.

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