The Board of Directors of Kamdhenu Ventures Limited (“the Company”) in their meeting held on 18th May, 2023, approved to make investment in Kamdhenu Colour and Coatings Limited (‘KCCL’), a wholly owned subsidiary of the Company upto an aggregate amount of Rs. 58.0 crore by way of subscription of 58,00,000, 0.01% Optionally Convertible Redeemable Preference Shares (‘OCRPS’) of face value of Rs. 10 each at an issue price of Rs. 100 per share of KCCL.
KCCL’s turnover for the Financial Year 2022-23 was Rs. 250.51 crore and net worth Rs. 85.44 crore.
The Company has raised an amount of Rs. 65.25 Crore through issuance of 45,00,000 Equity Shares to Qualified Institutional Buyers. As per object of said fund raising, the proceeds of the said issuance of Equity Shares shall be utilized for Redemption of Preference Shares and infusion of funds in KCCL for the below objects:
- Meeting the Working Capital Requirement of Paint Business;
- Image Building through aggressive Branding and Marketing of the Paint products;
- Meeting Capital expenditure by way of addition of fixed machineries and tinting machine at dealers counter; and
- Reduction in Guaranteed Emergency Credit Line (GECL) facility loan/debt.
This infusion of funds shall be utilized by the KCCL for the aforesaid objects for revamping the Paint Business.
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