NHC Foods Unveils Rs.47.42 Crore Rights Issue at Attractive Valuation

NHC Foods Ltd launches a Rs.47.42 crore rights issue, offering shares at Rs.1 each, open for subscription until December 18, 2024. The funds raised will support working capital, loan repayments, and corporate purposes. Investors can buy entitlements via BSE, with a 4:1 rights ratio determined.

NHC Foods Ltd, a major player in the agro-commodities sector, has announced a Rs.47.42 crore rights issue, opening for subscription from December 5 to December 18, 2024. The issue is attractively priced at Rs.1 per share, significantly lower than the current market value of Rs.2.76 as of December 6, 2024.

Investors can also acquire NHC Rights Entitlements (BSE Symbol: NHCFO-RE) through the BSE, facilitating participation in the rights issue at Rs.1 per share. The renunciation of these rights must be completed by December 12, 2024. The rights entitlement ratio stands at 4:1, offering four rights equity shares for every equity share held by shareholders as of the record date, November 26, 2024.

The company aims to utilize the proceeds from this issue to address multiple financial needs, with Rs.25 crore earmarked for working capital, Rs.15 crore for the repayment of secured loans, and Rs.7 crore for general corporate purposes. This move comes after a significant increase in profitability, with net profits reaching Rs.4.05 crore for the six months ending H1FY25, compared to Rs.2.35 crore for the full fiscal year FY24.

(With inputs from agencies.)