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Stock Report
Shares of Som Distilleries and Breweries Ltd crashes 10%
Posted On : 2024-02-12 11:12:55( TIMEZONE : IST )
The equity shares of Som Distilleries & Breweries Limited (SDBL) crashed in today's trading after the company announced that Woodpecker Distilleries and Breweries Private Limited (WDBPL) (Erstwhile Wholly Owned Subsidiary) has ceased to be WOS of the company, pursuant to Allotment of Equity Shares to SDBL and individual promoters of the Company.
The shares of the company hit an intraday low of Rs. 243.45 and high of Rs. 259.50. The stock was last trading in BSE at Rs. 249.35, down by Rs. 21.90 or 8.07%.
Woodpecker Distilleries and Breweries Private Limited (WDBPL or Woodpecker), the WOS contributed INR 262.06 crores as turnover i.e. 32.50% of the total consolidated turnover of the Company SDBL during last year.
SDBL has given INR 77.91 crores of unsecured loans to Woodpecker Distilleries and Breweries Private Limited (Woodpecker) it's WOS as on 31st December, 2023. This balance was at the same level as on 31st March 2023. This amount is besides the equity of INR 51 crores invested as equity in Woodpecker.
Woodpecker is also in the middle of capex program amounting to INR 70 crores which is expected to be completed by Q1FY25. Woodpecker has spent INR30 crores for this project so far. There was a further need of funds.
With that background in mind, the Board of Woodpecker decided to allot additional equity shares worth INR 30 crores to Mr.JK Arora and Mr. Deepak Arora and another INR 10 crores of shares to SDBL. This raise will help Woodpecker to part finance the capex as well as facilitate the return of the unsecured loans to the parent company.
The numbers doesn't add up since, the subsidiary itself needs additional INR 40 crores for its expansion and the fund infusion by promoter is only INR 30 crores. So, there is no clarity on how the unsecured loans to the parent company will be returned.
Post the above allotment, Som Distilleries and Breweries Limited will hold 78.87% stake in the subsidiary and promoters Mr. Jagdish Kumar Arora will hold 14.08% and Mr. Deepak Arora will hold 7.04%.
Shares of Som Distilleries & Breweries Limited closed on Friday in BSE at Rs. 271.25 as compared to the previous close of Rs. 259.15. The total number of shares traded during the day was 271306 in over 4371 trades.
