Swiss Military board OKs rights issue at Rs 4.50 per share

22 Mar 2022 , 12:01 PM

The board of Swiss Military Consumer Goods on 22 March 2022, decided to issue 9,82,96,996 equity shares at Rs 4.50 each in the entitlement ratio of 1:1 (one rights share for each equity share held).

Shares of SMCG were up 2.82% at Rs 23.70 on the BSE. The rights issue price is over 81% discount to the ruling market price.

On 14 February 2022, the company announced that it plans to raise funds for augmenting the working capital required for the business verticals of home appliances and mens innerwear.

Later on 25 February 2022, the firms board decided to raise upto Rs 50 crore through rights issue of fully paid-up equity shares.

Last year, SMCG raised Rs 9.83 crore through a right issue. It allotted 4.91 crore equity shares on a rights basis to the existing equity shareholders at an issue price of Rs 2 per share in the ratio of 1:1. The rights issue opened on 24 November 2021 and closed on 8 December 2021.

SMCG is primarily engaged in the business of promoting, marketing and selling lifestyle products under the brand Swiss Military. It has also added mens innerwear and brown goods/home appliances category. It has recently ventured into business of manufacturing Radio Frequency Identification (RFID) e-seal.

Swiss Military is an internationally renowned and celebrated Swiss brand which is duly registered in over 40 countries.

SMCG reported net profit of Rs 1.02 crore in Q3 December 2021 as against net loss of Rs 0.07 crore in Q3 December 2020. Net sales surged to Rs 17.76 crore in Q3 December 2021 as against Rs 0.25 crore in Q3 December 2020.

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