Annapurna Swadisht to raise Rs 69.33 crore through preferential issue

City-based FMCG company Annapurna Swadisht Limited on Tuesday said it will raise Rs 69.33 crore through a preferential issue of equity shares and warrants by September to expand manufacturing capability.

The company will issue the following securities on a preferential basis: 11,00,000 equity shares, for Rs 295 per equity share, aggregating to Rs 32.45 crore and 12,50,000 warrants, at an exercise price of Rs 295 per warrant, aggregating to Rs 36.88 crore. 

Warrants may be converted in tranches within 18 months, the company stated.

"The funds raised will 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,” company CFO Ravi Sarda said.

Utilisation of funds raised in the first tranche will result in savings of around Rs 6 crore per annum by way of reduction in interest payment and rentals, he said.

The company had raised close to Rs 30.25 crore through an initial public offering in September 2022, at a valuation of Rs 114.95 crore and is currently listed on the NSE Emerge platform.

Annapurna Swadisht has been on an expansion spree – adding new products, geographies and capacities across eastern India, including a recent foray into Uttar Pradesh, the company said in a statement.

Founded in 2016 as Annapurna Agro Industries, the company ventured into packaged snacks in 2020 and primarily catered to the Tier-III and Tier-IV markets in Bihar, Jharkhand, West Bengal, Assam, Odisha and Uttar Pradesh. 

The company has nearly 520 distributors and over 100 super distributors, and the products are available across over 2.5 lakh retail touchpoints.

The company has registered nearly 163.13 per cent growth in turnover at Rs 160.65 crore in FY-2023, up from around Rs.61.05 crore in FY-2022. 

Net profit increased over three times to Rs. 7.14 crore in FY-2023, up from Rs. 2.41 crore in FY-2022.