Som Distilleries and Breweries Ltd approves preferential issue to promoters, non-promoters

The Board of directors of Som Distilleries and Breweries Limited have considered and approved raising of funds through Issue of Convertible Equity Warrants to the Promoters, Promoter Group and Other Public Investors on Preferential Basis by issuing up to 51,50,000 (Fifty-One Lakhs and Fifty Thousand) Warrants convertible in one or more tranches to equity shares of ₹5/- each of the Company at a price of ₹275/- (including premium of ₹270/-) for each Warrant subject to necessary Shareholders / Regulatory approvals, as applicable.

The allotees are: Mr. Jagdish Kumar Arora (Promoter) - 4250000 warrants, Mr. Deepak Arora (Promoter) - 600000 warrants, Lakeside Retail Private Limited (Non-Promoter) - 150000 warrants and Icy Blast Retails Private Limited (Non-Promoter) - 150000 warrants.

The Board considered and approved raising of funds through Issue of Equity Shares to Ampersand Growth Opportunities Fund Scheme I (Non-Promoter) of the Company on Preferential and Private Placement Basis by issuing up to 2,50,000 (Two Lakhs and Fifty Thousand) Equity Shares of ₹5/- each of the Company at a price of ₹275/- (including premium of ₹270/-) subject to necessary shareholders/ regulatory approvals, as applicable.

The preferential issue of Convertible Equity Warrants and Equity Shares shall be used primarily for :

1. The funds raised will be used to pay off some of the existing loans taken by the company.

2. To part finance the capex programs of the company being planned at Bhopal and Hassan.

3. To fund the growing need for the working capital as we increase our footprint across the states and take on competition.

4. Expansion of operations: This will involve expenditure towards entering new markets, launching new products or services.

By addressing these objectives, the organization seeks to strengthen its financial position, improve operational capabilities, and pursue growth opportunities.

The Board also considered and approved to increase in the limits of investments / Loans and Guarantees upto ₹1000 Crores under Section 186 of Companies Act, 2013, subject to the approval of shareholders in the ensuing Extra Ordinary General Meeting.

Shares of Som Distilleries & Breweries Limited was last trading in BSE at Rs. 295.05 as compared to the previous close of Rs. 302.35. The total number of shares traded during the day was 68320 in over 2873 trades.

The stock hit an intraday high of Rs. 306.70 and intraday low of 285.45. The net turnover during the day was Rs. 20080552.00.

Source : Equity Bulls

Keywords

SomDistilleriesandBreweries INE480C01020 SDBL FundRaising PreferentialIssue Promoters NonPromoters