The promoters of Tilaknagar Industries Limited (TI) have announced de-pledging of 4.18 crore equity shares, representing nearly 22 per cent of the total paid-up capital of the company. This has resulted in a reduction in the pledged promoter equity to 23.9 per cent from the earlier 75.8 per cent of the total promoter shareholding in the company.

The promoters and the promoter group of Tilaknagar Industries currently hold over 8.04 crore equity shares, representing 42 per cent of the total paid-up capital. Before the pledge revocation, 6.10 crore equity shares constituting 75.8 per cent of the promoter shareholding and 31.9 per cent of the total paid-up capital of the company were pledged.

After the release of 4.18 crore equity shares from the pledge, the total number of pledged shares has reduced to 1.92 crore. This represents 10 per cent of the total paid-up capital and 23.9 per cent of the total promoter shareholding.

Convertible warrants

The promoters of the company had subscribed to convertible warrants worth ₹63 crore at ₹53 per warrant in December 2021, which have all been converted into equity shares as on June 30, 2023. “Since March 2019, Tilaknagar Industries has reduced its debt by almost ₹950 crore. In FY23, the company’s debt decreased by ₹199 crore to ₹250 crore from ₹449 crore as of March 2022. As on March 2023, the company’s gross debt and net debt stand reduced to ₹250 crore and ₹182 crore, respectively. As a result, Tilaknagar Industries’ finance costs also reduced significantly to ₹40 crore in FY23, compared to ₹62 crore in FY22 and ₹184 crore in FY19. The company plans to become near net-debt free over the next 12-18 months,” the company said in a statement.

Maker of the famous Mansion House brandy, Tilaknagar Industries has recorded a 43 per cent growth in volumes over FY22. The company’s volume growth in FY23 was led by its flagship brand Mansion House and Courrier Napoleon which grew 40 per cent and 50 per cent, respectively, year-on-year.