City-based FMCG company Annapurna Swadisht Limited on Tuesday said it will raise Rs 69.33 crore through a preferential issue of equity shares and warrants by September to expand manufacturing capability.
The company will issue the following securities on a preferential basis: 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. Warrants may be converted in tranches within 18 months, the company stated.
“The funds raised will 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, company CFO Ravi Sarda said.
Utilisation of funds raised in the first tranche will result in savings of around Rs 6 crore per annum by way of reduction in interest payment and rentals, he said.
The company had raised close to Rs 30.25 crore through an
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