Vinyl Group (ASX:VNL) raised about AU$7.7 million following the completion of the retail component of its entitlement offer, according to a Tuesday filing with the Australian bourse.

Under the offer, the company secured applications for about 1.4 million new shares, raising about AU$1.4 million, the filing said.

The retail component garnered AU$1.4 million from 1.4 million new shares, while the shortfall of 32.4 million shares, worth AU$3.2 million, will be issued under an underwriting agreement.

The new shares, including those from the shortfall, will be allotted Tuesday, and are expected to begin trading on a normal settlement basis on Wednesday, the company said.

Funds raised will be used to complete the acquisition of Concrete Playground and replenish its cash reserve, the company added.

Shares of the group climbed past 4% in recent Tuesday trade.