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Tilaknagar Industries raises Rs126cr via preferential allotment of equity shares and convertible warrants

The current fundraising is a strong endorsement of the turnaround showcased by TI in its business as well as its strategy to become a near-debt free company over the next few years without compromising on growth.

December 21, 2021 3:03 IST | India Infoline News Service
Tilaknagar Industries
Tilaknagar Industries Limited (TI), one of the leading Indian-Made Foreign Liquor (IMFL) manufacturers, today announced that its board has approved the allotment of equity shares to Lotus Family Trust and convertible warrants to two promoter entities.

In addition to this, the company has also issued shares to Edelweiss Asset Reconstruction Company Trusts (“EARC”), for conversion of part debt into equity.

Tilaknagar Industries Ltd is currently trading at Rs90.40 up by Rs3.9 or 4.51% from its previous closing of Rs86.50 on the BSE.
The company has allotted a total of 1,46,66,089 equity shares to the Lotus Family Trust and EARC and 1,18,86,792 convertible warrants to Arunoday Investments Private Limited and M L Dahanukar And Company Private Limited, part of the Promoter and Promoter Group (“Promoter”).

The company has issued 1,18,86,792 equity shares at Rs 53 per equity share, totalling Rs 63 crore to Lotus Family Trust and 1,18,86,792 convertible warrants issued to promoter at Rs 53 per warrant, totalling Rs 63 crore. To EARC, the company has issued 27, 79,297 equity shares on conversion of Rs 14.7 crore of balance debt into equity shares. 

The preferential issue was approved by the shareholders at the Extraordinary General Meeting (EGM) held on November 27, 2021.

Commenting on the fund raise, Mr. Amit Dahanukar, Chairman and Managing Director said, “We are glad that the Lotus Family Trust strongly believes in our vision of becoming the fastest growing IMFL Company. At TI, we are now looking forward to a higher business growth momentum, strong balance sheet and a stronger cash flow generation.”
 
The current fundraising is a strong endorsement of the turnaround showcased by TI in its business as well as its strategy to become a near-debt free company over the next few years without compromising on growth. Further, the fund infusion by the promoter is a testament of their confidence in achieving the stated goals of the business. The funds so raised will be predominantly used as growth capital, augmenting working capital requirements and reducing a part of the company’s debt.

In the five key states that contribute more than 70 per cent of the company’s volumes, TI’s flagship brand, Mansion House has seen a 5-year compound annual growth rate (CAGR) of 14.4 per cent (FY17 to FY21), increasing its market share substantially.

“All this has been achieved in a relatively difficult period wherein access to growth capital was limited. With the current fund infusion, we truly believe that not only can we maintain the growth of our flagship brands but also look at introducing new products across segments and geographies”, Mr Dahanukar added.

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