Tilaknagar Industries' Promoters Secure Release of 4.18 Crore Pledged Equity Shares

The promoters of Tilaknagar Industries Limited (TI) (BSE: 507205) (NSE: TI), a leading Indian-Made Foreign Liquor (IMFL) manufacturer, have announced de-pledging of 4.18 crore equity shares, representing nearly 22 per cent of the total paid-up capital of the company. This has resulted in a steep reduction in the pledged promoter equity to 23.9 per cent from the earlier 75.8 per cent of the total promoter shareholding in the company.

The promoters and the promoter group of Tilaknagar Industries currently hold over 8.04 crore equity shares, representing 42 per cent of the total paid-up capital. Prior to the pledge revocation, 6.10 crore equity shares constituting 75.8 per cent of the promoter shareholding and 31.9 per cent of the total paid-up capital of the company were pledged.

After the release of 4.18 crore equity shares from the pledge, the total number of pledged shares have reduced to 1.92 crore. This represents 10 per cent of the total paid-up capital and 23.9 per cent of the total promoter shareholding.

The promoters of the company had subscribed to convertible warrants worth Rs 63 crore at Rs 53 per warrant in December 2021, which have all been converted into equity shares as on June 30, 2023.

Since March 2019, Tilaknagar Industries has reduced its debt by almost Rs 950 crore. In FY23, the company's debt decreased by Rs 199 crore to Rs 250 crore from Rs 449 crore as of March 2022. As on March 2023, the company's gross debt and net debt stand reduced to Rs 250 crore and Rs 182 crore, respectively. As a result, Tilaknagar Industries' finance costs also reduced significantly to Rs 40 crore in FY23, compared to Rs 62 crore in FY22 and Rs 184 crore in FY19. The company plans to become near net-debt free over the next 12-18 months.

Maker of the famous Mansion House brandy, Tilaknagar Industries has also registered strong business growth in FY23 recording a 43 per cent growth in volumes over FY22. The company's volume growth in FY23 was led by its flagship brand Mansion House and Courrier Napoleon which grew 40 per cent and 50 per cent, respectively, year-on-year. In FY23, Courrier Napoleon also became the company's second millionaire brand, after Mansion House.

Despite inflationary pressures faced by the alco-bev industry, the company's earnings before interest, taxes, depreciation and amortization increased by 22 per cent to Rs 137 crore in FY23 as against Rs 112 crore in FY22.

Shares of Tilaknagar Industries Limited was last trading in BSE at Rs. 169.35 as compared to the previous close of Rs. 171.80. The total number of shares traded during the day was 78103 in over 1775 trades.

The stock hit an intraday high of Rs. 178.10 and intraday low of 168.05. The net turnover during the day was Rs. 13553230.00.

Source : Equity Bulls

Keywords

TilaknagarIndustries INE133E01013 Promoters PledgeRelease