PNN
Ahmedabad (Gujarat) [India], May 27: Rs 38.83 crore Rights issue of Gujarat based Franklin Industries Ltd (BSE – 540190) engaged in the trading of agriculture commodities and providers of contract farming services has opened for subscription on May 24, 2024. The funds raised through the issue will be utilised to fund company’s expansion plans including working capital requirements and general corporate purposes. Right issue of the company are offered at a price of Rs 3.58 per share as compared to closing share price of Rs 7.50 per share on 24 May, 2024. Rights Issue will close on 11 June, 2024.
Highlights:
* The company will issue 10.84 crore fully-paid equity shares at an issue price of Rs 3.58 per share
* Shares in Rights issue priced at Rs 3.58 per share as compared to the closing share price of Rs 7.50 per share on 24 May 2024; Rights Issue will close on June 11, 2024
* Right Issue funds will be utilised to meet the working capital requirements, fund company’s expansion plans, and for general corporate purpose
* The rights entitlement ratio for the proposed rights issue is 3:1, 3 rights equity shares of Rs 1 each for every 1 fully-paid up equity shares held by the eligible equity shareholders
* For FY23-24, Total income rise 148 per cent Y-o-Y of Rs 50.96 crore; Net Profit grows multi-fold to Rs 10.46 crore
The Company will issue 10,84,50,000 fully paid-up Equity Shares of the face value of Rs 1 each for cash at a price of Rs 3.58 per Equity Share (including a premium of Rs 2.58 per Equity Share) aggregating to Rs 38.83 crore. The Rights entitlement ratio for the proposed issue is fixed at 3:1 (3 Rights equity shares of face value of Rs 1 each for every 1 fully-paid equity share held by the equity shareholders on the record date – May 13, 2024). The last date for On-market Renunciation of Rights Entitlements is 5 June, 2024 .
Out of the issue proceeds of Rs 38.83 crore, company intends to use Rs 29.26 crore towards working capital requirement and Rs 9.31 crore towards general corporate purposes.
Incorporated in 1983, Franklin Industries Ltd is engaged in the business of trading of agricultural commodities, such as wheat, rice, maize, vegetables (including capsicum, tomato, etc.), fruits (including mango, watermelon, grapes, etc.), and other agricultural products. The company has recently announced its strategic initiative to diversify its business operation in contract farming business. Contract farming offers significant potential for expansion and innovation within its business framework. This initiative aligns with the company’s vision to optimize agricultural practices, leverage technological advancements, and establish mutually beneficial partnerships with local farmers and agricultural stakeholders.
The company practices contract manufacturing by leasing agricultural land where they cultivate Cucumbers, Onions, and Castor. The company shares a part of the yield with the farmers who work on a contractual basis on the leased land, thereby supporting the local farmers’ community.
The company also provides contract manufacturing services for agricultural products such as cucumber, onion, and castor. Company source these products from manufacturers by paying an advance payment or according to agreed terms, and then sell them to our network of distributors. Through our presence in the market, we have developed strong relationships with both farmers and the wholesaler/retailer community.
For FY23-24 ended March 2024, the company has reported total income of Rs 50.95 crore, rise of 148 per cent as compared to the total income of Rs 20.52 crore. Net Profit of the company for the year ended March 2024 was reported at Rs 10.46 crore, multi-fold growth from net profit of Rs 21.43 lakh in the corresponding period last year. Company has completed a stock split from Rs 10 per share to Rs 1 per share in January 2024.
Assuming full subscription, Post issue outstanding equity shares will increase to 14.46 crore equity shares from existing 3.61 crore equity shares.
(ADVERTORIAL DISCLAIMER: The above press release has been provided by PNN. ANI will not be responsible in any way for the content of the same)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
HINDI, MARATHI, GUJARATI, TAMIL, TELUGU, BENGALI, KANNADA, ORIYA, PUNJABI, URDU, MALAYALAM
For more details and packages
