Rohit Sharma To Tilak Varma: Swaraj Suiting Draws Cricketers For Preferential Issue

Swaraj Suiting Ltd., a textile manufacturer with a market capitalisation of about Rs 560 crore, has drawn attention from the cricketing world as three well-known players are likely to join its upcoming preferential share issue. Rohit Sharma, Abhishek Nayar and Tilak Varma are among the 198 proposed allottees who will receive shares in the new issue.

In addition, Santosh Iyer, the father of cricketer Shreyas Iyer was also part of the list.

The company has proposed issuing 43,76,500 equity shares on a preferential basis at Rs 236 per share, a move that will raise Rs 103.28 crore subject to shareholder and regulatory approval, according to its exchange filing.

Each of the four cricketers is set to receive 11,000 shares as part of the allotment.

In addition to the equity shares, Swaraj Suiting plans to issue 67,97,000 convertible warrants, each priced at Rs 236, which may be converted into an equal number of equity shares in the future. The warrant issue, aggregating Rs 160.40 crore, will be allotted to the promoter group and other identified investors, again pending necessary approvals. These warrants, once converted, stand to significantly expand the company’s equity base.

Beyond fundraising, the company has also sought shareholder approval for several other financial resolutions. These include the authority to extend loans or provide guarantees up to Rs 75 crore to entities in which directors may have an interest.

Swaraj Suiting also aims to raise its borrowing limit to Rs 1,000 crore, allowing it to exceed the current ceiling tied to paid-up capital and free reserves.

Additionally, the board has approved raising the limit for creating charges or mortgages on the company’s assets up to Rs 1,000 crore.

To formalise these proposals, the company will convene an Extra-Ordinary General Meeting on Dec. 24, where shareholders will vote on the preferential issues and associated resolutions.