Upper Circuit Alert: Osia Hyper Retail Board Approves Fundraising of Up to ₹650 Crore

Osia Hyper Retail Ltd, one of Gujarat’s prominent retail chains, has announced board approval for multiple fundraising plans totalling up to ₹650 crore through QIP, preferential equity, and convertible warrants. 

The Osia Hyper Retail share price reacted positively to this announcement, and the stock price of the company hit a 5% upper circuit.

Here are the details of the fundraising by the company: 

QIP (Qualified Institutions Placement)

Osia Hyper Retail Ltd announced that its board has approved an equity issue of up to ₹200 crore through Qualified Institutions Placement (QIP), subject to shareholder and regulatory approvals.

Preferential Equity Issue

Alongside the QIP, the board also cleared a preferential issue of equity shares worth up to ₹100 crore, with Elitecon International Ltd. named as the proposed allottee.

Convertible Warrants Issue

The company further approved raising up to ₹350 crore through convertible warrants on a preferential basis. Proposed allottees include FPIs such as Eminence Global Fund PCC – Eubilia Capital Partners Fund I, Zeal Global Opportunities Fund, and North Star Opportunities Fund VCC Bull Value Incorporated VCC Sub-Fund, among other non-promoter investors.

Approvals Required

The company stated that all fundraising initiatives remain subject to the approval of shareholders and statutory authorities as applicable.

Business Overview

Osia Hypermart, the retail division of Osia Hyper Retail Ltd., sells about 3 lakh items in categories like clothing, fast-moving consumer goods, plastics, home and décor, tableware, appliances, toys, stationery, luggage, and furniture.

With a better performance in the non-food segment, the retailer's 50:50 divisional split between food and non-food highlights its concentration and expertise.

Osia provides physical and online services to millions of clients in Gujarat, where it operates more than 40 storefronts totalling 7.8 lakh square feet. The business is also present in Dubai.

Osia Hyper Share Price Locked in 5% Upper Circuit

On Tuesday, August 26, despite the market trading in the red, Osia Hyper Retail's share price hit a 5% upper circuit. 

Disclaimer: The article is for informational purposes only and not investment advice.