Vipul Organics share price jumps 3.5% as rights issue subscribed 180%. Do you own?

Shares of Vipul Organics surged nearly 4 percent in intra-day trading on April 3 after the company’s rights issue witnessed robust investor interest, getting subscribed 180 percent. The issue, which aimed to raise ₹20.41 crore, received applications worth ₹36.74 crore, reflecting strong shareholder confidence in the company’s growth trajectory.

Rights Issue Oversubscribed by 80%

Vipul Organics had offered 44,37,291 shares through its rights issue at ₹46 per share, including a premium of ₹36 per share. However, investor demand exceeded expectations, with total applications reaching 79,88,227 shares—1.8 times the original issue size.

Commenting on the overwhelming response, Vipul P. Shah, Managing Director of Vipul Organics, expressed gratitude towards shareholders, stating, “We are overwhelmed by the shareholder response to our rights issue. Despite challenging market conditions, our investors’ belief in the company and its future growth has led to an 80% oversubscription. The funds raised will be instrumental in advancing our greenfield project at the Sayakha facility.”

Vipul Organics had set March 10, 2025, as the record date for the rights issue, with shares being allotted in a 1:3 ratio—one new equity share for every three fully paid-up shares held. The issue opened on March 21, 2025, and closed on April 2, 2025.

Rights Issue Pricing Adjustment

In light of prevailing market conditions, Vipul Organics reduced the rights issue price to ₹46 per share, down from the earlier announced ₹54 per share. The move aimed to make the issue more attractive to shareholders, ensuring better participation and capital mobilization. Despite the price revision, the overwhelming subscription indicates strong investor confidence in the company’s long-term prospects.

Stock Performance and Market Reaction

Following the rights issue subscription announcement, shares of Vipul Organics climbed 3.9 percent to hit an intra-day high of ₹141.50. However, the stock has been under pressure over the past year, shedding 27 percent. It extended its losing streak for the fifth consecutive month, declining 13 percent in March after falling 14 percent in February, 8 percent in January, 22 percent in December, and another 8 percent in November.

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