Bhandari Hosiery Exports Limited, a leading textile and garment manufacturing company, has informed the stock exchanges about an upcoming Board of Directors meeting scheduled for April 30, 2025. This meeting is being convened under the provisions of Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and aims to deliberate on a critical financial strategy—a fresh Rights Issue.

According to the official communication dated April 23, 2025, the company will consider raising long-term equity funds via a Rights Issue. The primary objective of this fundraising initiative is to reduce the company's current secured debts and to enhance the working capital base. This move aligns with the company's broader goal to strengthen its financial position and operational capabilities.

The Board will also deliberate on the formation of a dedicated Rights Issue Committee. This committee, if constituted, will be tasked with overseeing and managing the entire process of the proposed Rights Issue—from planning and structuring to regulatory compliance and execution.

This step is indicative of Bhandari Hosiery’s commitment to financial prudence and sustainable growth. By proposing a Rights Issue, the company is seeking to engage its existing shareholders while simultaneously pursuing a cost-effective and inclusive fundraising mechanism. Rights Issues, being pro-rata offers to existing shareholders, are often viewed favorably in the market as they allow current investors to maintain their shareholding percentage while the company raises funds at relatively low issuance costs.

This potential Rights Issue would also help the company free up resources currently used for servicing debt. By reducing its interest obligations, Bhandari Hosiery aims to channel more funds into operational activities, including expanding production capacity, investing in modern technologies, and improving supply chain efficiencies.

In recent years, the textile and garment industry has faced challenges due to global supply chain disruptions, rising input costs, and currency fluctuations. However, companies with agile strategies and sound financial planning have been able to weather the storm better. With this proposed Rights Issue, Bhandari Hosiery appears poised to improve its financial leverage and build resilience against industry headwinds.

Further details about the Rights Issue—such as the issue size, price, entitlement ratio, record date, and timeline—are expected to be disclosed after the Board meeting on April 30. The market will keenly watch the outcome of this meeting, as it may signal the company's medium-term financial and operational trajectory.

The Notice has been sent to both the BSE and NSE, where the company’s securities are listed. The Scrip Code is 512608 on BSE and Symbol is BHANDARI on NSE. Shareholders and the investing public have been urged to take note of this important development.

This announcement follows a broader trend among mid-cap and small-cap Indian companies that are exploring rights issues and preferential allotments as viable routes to capital mobilisation amid tightening liquidity and cautious investor sentiment.

In conclusion, the April 30 Board Meeting of Bhandari Hosiery Exports Limited could be a significant turning point. If approved, the Rights Issue has the potential to enhance shareholder value, de-leverage the balance sheet, and provide the company with the necessary financial muscle to scale operations in both domestic and international markets. Investors and stakeholders are advised to stay tuned for updates following the conclusion of the meeting.

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