Annapurna Swadisht Limited has received the Board’s approval to raise Rs. 69.33 crore through a preferential issue of equity shares and warrants by the end of September 2023. The Warrant may be converted in tranches within 18 months from the issue date.
The Company will issue the following securities on a preferential basis – comprising 11,00,000 equity shares, for Rs. 295 per equity share, aggregating to Rs. 32.45 crore and 12,50,000 warrants, at an exercise price of Rs. 295 per warrant aggregating to Rs. 36.88 crore. The current capital raising is being done at Rs 484.45 crore market cap.
Commenting on the development, Ravi Sarda, Chief Financial Officer, Annapurna Swadisht, said, “The funds raised would be utilised to purchase a strategic asset to expand the manufacturing base in West Bengal to reduce fixed costs, reduction of high-cost debt, and meet the working capital requirements”.
“The utilisation of funds raised in the first tranche will result in savings of around Rs 57 lakh per month by way of reduction in interest payment and rentals”, further added Mr. Sarda.
The Company had raised close to Rs 30.25 crore through an initial public offering in September 2022, at a valuation of Rs 114.95 crore and is currently listed on the NSE Emerge platform. Since then, Annapurna Swadisht has been on an expansion spree – adding new products, geographies and capacities across eastern India, including a recent foray in Uttar Pradesh.
Founded in 2016 as Annapurna Agro Industries, it ventured into packaged snacks in 2020 and primarily catered to the Tier III and Tier IV markets in Bihar, Jharkhand, West Bengal, Assam, Odisha and Uttar Pradesh. The company has close to 72 SKUs (stock-keeping units) across 10 broad categories, including snacks, candies and cakes. The Company has nearly 520 distributors and over 100 super distributors, and the products are available across over 2.5 lakh retail touchpoints.
The Company has registered nearly 163.13 per cent growth in turnover at Rs.160.65 crore in FY-2023, up from around Rs.61.05 crore in FY-2022. Net profit increased over three times to Rs. 7.14 crore in FY-2023, up from Rs. 2.41 crore in FY-2022.
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