Filatex Fashions Locked in Upper Circuit: Subsidiary Secures Rs 661 Crore Order Ahead of Stock Split

The NSE benchmark Nifty50 index has pulled back from it’s all-time high, slipping below the 25,300 mark amid increasing market volatility. However, not all stocks are following this trend. Filatex Fashions Ltd. has been an outlier, locked at its upper circuit limit for the second consecutive session. The surge comes on the back of significant export orders received by its subsidiary, Filatex Mines and Minerals Pvt. Ltd.

Filatex Mines and Minerals Bags Major Export Orders

Filatex Mines and Minerals Pvt. Ltd., a subsidiary of Filatex Fashions Ltd., recently announced receiving export orders worth a staggering Rs. 661 crore (USD 78.88 million) in just one month. The subsidiary, which operates in the mining business, has secured an order from the Republic of Guinea-based Société DIMO – BTP SARL (“SDBS”) for the supply of 1,59,000 tonnes of polished marble tiles over a period of five years, valued at USD 43.88 million (Rs. 368 crore). SDBS, a prominent distributor of granite and marble, has a dealer network spanning 5,000 outlets across 14 African countries.

This is the second major export order for Filatex Mines and Minerals. Earlier, on July 26, 2024, the company received an order to supply 2,97,388 metric tonnes of white marble worth USD 35 million (Rs. 293 crore) over seven years. The series of lucrative orders has fueled investor confidence, as reflected in Filatex Fashions Ltd.’s strong stock performance.

Market Performance and Recent Developments

The stock has surged, locking at the upper circuit in back-to-back sessions, signaling strong investor sentiment driven by recent order wins and strategic corporate decisions.

Leadership Changes: Appointment of Sunil Agarwal as CEO

In a strategic move to strengthen its leadership, Filatex Fashions Ltd. has appointed Mr. Sunil Agarwal as an Additional Director and CEO in the Executive Director category. This appointment, approved by the Board of Directors on July 26, 2024, is subject to shareholder approval at the upcoming Annual General Meeting. Mr. Agarwal brings over a decade of experience in financial services, advisory, investment advisory, and risk management consulting, having served on the boards of several prominent companies.

Corporate Action: 5-for-1 Stock Split to Enhance Liquidity

Filatex Fashions Ltd. has undertaken significant corporate actions to enhance liquidity and widen its shareholder base. During the Extraordinary General Meeting held on July 15, 2024, the company approved a 5-for-1 stock split. Following shareholder approval, the authorized share capital now stands at Rs. 850 crore, divided into 850 crore equity shares of Rs. 1 each.

The stock split, approved by the Board on June 7, 2024, involves subdividing each existing equity share of Rs. 5 into five equity shares of Rs. 1 each. This move aims to make the stock more accessible to retail investors and enhance trading liquidity. The record date for the stock split was fixed as August 9, 2024.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.