The Board of Directors of Gujarat Cotex Limited has resolved to withdraw the application for "In-Principle Approval" submitted to BSE Limited, pertaining to the proposed issue and allotment.
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Gujarat Cotex Ltd has decided to withdraw its application to BSE for in-principle approval of a proposed preferential issue of securities. The issue, if it had gone ahead, would have comprised up to 1.36 crore warrants (at Rs. 16.70 each, convertible into equity shares of Rs. 5 face value within 18 months) and up to 17.03 lakh equity shares to be issued to M/s. Octagon Infratech Ltd against outstanding dues of Rs. 2.84 crore. The company cited sharp market volatility, a steep decline in its share price, and weak investor sentiment as reasons for the withdrawal. Management has stated that this decision does not affect the company's financial stability or operations, and that it will explore alternative fundraising options when market conditions improve.
Short-term negative signal — the company could not raise planned capital due to poor market reception, which may delay growth or debt-resolution plans; however, management reassures that financial health and operations remain unaffected.