Kolkata-based packaged snacks and food beverage company Annapurna Swadisht has obtained board approval to raise INR 69.33 crore through a preferential issue of equity shares and warrants, slated for completion by the end of September 2023. The conversion of these warrants into shares can take place in tranches over a span of 18 months from the date of the initial issue.
As per a company-issued press statement, the firm intends to offer the following securities through a preferential approach: this includes 11,00,000 equity shares at a rate of INR 295 per equity share, summing up to INR 32.45 crore, along with 12,50,000 warrants, each exercisable at a price of INR 295 per warrant, collectively amounting to INR 36.88 crore. The ongoing capital raising initiative is taking place within the context of a market capitalization of INR 484.45 crore.
Commenting on the development, Ravi Sarda, Chief Financial Officer, Annapurna Swadisht, said, “The funds raised would 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. The utilisation of funds raised in the first tranche will result in savings of around INR 57 lakh per month by way of reduction in interest payment and rentals.”
Annapurna Swadisht made an impressive debut in September 2022 with its initial public offering, raising nearly INR 30.25 crore at a valuation of INR 114.95 crore. The company is now successfully listed on the NSE Emerge platform. Following its IPO, Annapurna Swadisht has been actively expanding its operations, introducing new products, exploring new territories, and increasing production capacities throughout eastern India. Notably, the company has recently ventured into the lucrative market of Uttar Pradesh.
Annapurna Agro Industries, established in 2016, made a significant shift in 2020 by entering the packaged snacks market. Initially, the company focused on serving the Tier III and Tier IV regions in Bihar, Jharkhand, West Bengal, Assam, Odisha, and Uttar Pradesh. Presently, Annapurna Agro Industries boasts an impressive product portfolio of approximately 72 SKUs spanning across 10 diverse categories, including snacks, candies, and cakes. With a robust distribution network, the company has amassed around 520 distributors and over 100 super distributors, ensuring its products reach over 2.5 lakh retail touchpoints.
