Ceramic products maker Asian Granito India Ltd on Friday said the company is planning to raise Rs 225 crore via rights issue as it needs capital for expansion.

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In an interview with CNBC-TV18, Amarendra Kumar Gupta, chief financial officer, said the promoters are contributing to around Rs 60 crore and if there is underperformance in the rights issue, they will subscribe fully.

"Promoters have given an intent that they want to subscribe to around 51 percent. Right now, they are at 26 percent, so another 25 percent they will be picking up from the market at an appropriate time, in the long run," he said.

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Out of Rs 225 crore, which the company plans to raise through the rights issue, Rs 80 crore will be used to repay debt.

"We will be paying Rs 80 crore for our standalone debt, so, on a standalone basis, we will be debt-free. Around Rs 84 crore we are going to use in working capital requirement and balance we are going to use for the general corporate purpose which we will use for expansion of facilities," he explained.

The company is aiming for a 100 percent growth in exports in FY22 year-on-year (YoY).

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For the full interview, watch the accompanying video.