Richa Industries Ltd (BSE:532766) announced a private placement of 1,151,000 common shares on July 21, 2016. Each share to be issued will have a face value of INR 10 per share. The company will issue shares to promoters group by way of preferential allotment. The round will include participation from existing individual investors Sushil Gupta for 331,250 shares, Subhash Gupta for 345,843 shares, and Sandeep Gupta, Managing Director of the company for 337,813 shares. Post the completion of the transaction, Sandeep Gupta will hold 6.06% stake from 4.92% stake in the company, Sushil Gupta will hold 5.83% stake from 4.69% stake in the company, and Subhash Gupta will hold 5.40% stake from 4.18% stake in the company. The round will include participation from other investors. As part of the round, the investors will acquire a total of 3.97% stake in the company. All securities to be issued will have a lock-up period. The transaction is subject to approval from shareholders’ of the company on August 13, 2016 at the 22nd annual general meeting.