Mumbai (Maharashtra) [India], May 17 (ANI/NewsVoir): The Board of Tilaknagar Industries has approved allotment of 1.39 crore equity shares of Rs 10 each to Edelweiss Asset Reconstruction Company Limited (EARC) at an issue price of Rs 24.36 per share, including premium of Rs 14.36 per equity share.
The said allotment of shares on preferential basis to EARC has been done towards conversion of part of the debt owed to it by the company, amounting to approximately Rs 33.86 crore.
Subsequent to the allotment, Domestic Institutional Investors’ (DII) holding in the company will be 10 per cent. The promoter group holding will be 49.21 per cent and public shareholding (other than DII) 40.79 per cent.
Tilaknagar Industries, renowned for making the famous Mansion House Brandy, had entered into a long restructuring agreement with EARC wherein total loans of Rs 523 crore have been restructured at Rs 344 crore at an interest rate of 9 per cent.
In lieu of strategic debt-restructuring implemented by the company management, Tilaknagar Industries has bounced back strongly while its shares have hit a five-year high on the Indian bourses. As a result of the one-time settlements (OTS), the finance costs of the company have reduced significantly and the decreasing operational costs, every quarter, have had a huge positive impact on the company’s financial performance.
Recently, the company also signed a ten-year deal with alco-bev giant Pernod Ricard. As part of the long-term agreement, Tilaknagar Industries will manufacture the French distiller’s flagship brands at its manufacturing unit in Maharashtra. The association may also be extended to more states in the near future.
Under the leadership of Amit Dahanukar, Tilaknagar Industries, which is among the major distillers in India, has emerged to be the largest manufacturer of premium brandy in the country.
This story is provided by NewsVoir. ANI will not be responsible in any way for the content of this article. (ANI/NewsVoir)
The above news was originally posted on www.bignewsnetwork.com