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Tilaknagar Industries, an alcoholic beverage manufacturer, has issued about 1.39 crore shares at ₹24.36 a share to Edelweiss Asset Reconstruction Company as part of debt restructuring of ₹34 crore.
The issuance of shares is at a premium of ₹14.36 a share equity. Tilaknagar Industries had entered into a long restructuring agreement with Edelweiss ARC wherein total loans of ₹523 crore have been restructured at ₹344 crore at an interest rate of 9 per cent.
Cuts losses
The company had managed to trim its losses in the September quarter to ₹3 crore against loss of ₹36 crore logged in the same quarter last financial year. It cut down loss considerably due to sharp decline in finance costs. Revenue in the September quarter was down at ₹363 crore against ₹415 crore logged in the same period last year. In a sign of revival from Covid impact, the company’s net loss was down from ₹23 crore logged in the June quarter on a revenue of ₹186 crore.
Showing strong signs of recovery post lockdown, quantitative sales of the company grew almost 150 per cent to 14.96 lakh cases against 6.18 lakh cases in Q1 of the current fiscal year. The rollback of the steep Covid-19 tax by the Andhra Pradesh government and withdrawal of the pandemic tax by the Puducherry government from November-end will give a significant boost to the company’s sales. Earlier, demand in Andhra Pradesh and Puducherry had plunged 76 per cent and 87 per cent, respectively, due to the Covid-19 levy.
‘Significant recovery’
Amit Dahanukar, Chairman and Managing Director, Tilaknagar Industries, said: “The company’s sales have shown significant recovery post the subdued performance in the first quarter on account of the pandemic.
“Sales are expected to match the yearly estimates, resulting in improved operational performance of the business in terms of sales, market share and margins,” he added. Founded in 1933 as Maharashtra Sugar Mills, Tilaknagar Industries has diverse portfolio of brands in various liquor categories including brandy, whisky, vodka, gin and rum.
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