Megastar Foods Ltd, a food processing company, intends to generate INR 42.38 crore by issuing preferential shares. The funds raised will be utilized to pre-pay existing debt and fulfill future financial needs.
As per a regulatory filing on Thursday, the board of the company has sanctioned the creation, issuance, offering, and allotment of up to 1.3 million shares with a face value of INR 10 each on a preferential basis. These shares will be offered to promoters, non-promoters, and shareholders in the public category.
The company will seek shareholders’ approval during the extraordinary general meeting.
“The proceeds of the preferential issue will be utilised for prepayment of borrowings of the company, meeting future funding requirements, working capital and other general corporate purposes of the company,” the filing said.
The preferential issue of equity shares will be offered at a price of INR 326 per share, with the company aiming to raise INR 42.38 crore through this issuance.
Megastar Foods operates a wheat processing facility in Punjab, with a turnover of INR 304.40 crore in the preceding year.
