Ajooni Biotech, a leading animal healthcare and feed company, plans to raise ₹29 crore through its rights issue that opens for subscription on Wednesday.
The funds raised through the issue will be used to meet the company’s expansion plans, market expansion and for general corporate purposes.
The rights issue priced at ₹6 a share is at 30 per cent discount to Tuesday’s closing price. The rights issue closes on December 15. The company launched its IPO on NSE Emerge platform in December 2017 and migrated to the main board of NSE in May.
The dairy-farm focused company will issue 4,83,60,313 fully paid-up equity shares. For every 30 shares held, as on record date of November 25, investors will get the rights to buy 29 shares. The last date for on-market renunciation of rights entitlement is December 9.
Jasjot Singh, Chairman and Managing Director, Ajooni Biotech, said the company has taken important strategic initiatives in the recent past with a focus to expand production capacities, launching new products, adding more channel partners and working with more farmers.
“We have a dedicated focus to leverage capabilities, develop cost-effective solutions to improve animal productivity. Proceeds of the issue will further strengthen the company’s balance sheet and help fund expansion plans,” he said.
Post the rights issue, total outstanding shares of the company should increase to 9,83,88,223 equity shares from 5,00,27,910 equity shares prior to the rights issue.
Established in 2010, Ajooni Biotech offers a wide range of products including quality cattle feed, cattle feed chips, camel feed, cotton oil cake, mustard oil cake and a wide range of feed supplements to cover the entire life-cycle of an animal.
The company has modern manufacturing facilities with a cumulative animal feed production capacity of 60,000 mtpa and liquid supplements capacity of 30 lakh litres per annum. It is currently working with over 10,000 farmer families in seven States of Northern India and plans to grow nationally.