In a major development for small investors and the SME food processing sector, Himalaya Food International Ltd has successfully completed its Rights Issue, backed strongly by its promoter group, who contributed ₹20.51 crore, including their full entitlement and additional subscription. This comes as a strategic move by the company to revive operations, clear debts, and fuel long-term growth.

The company, formerly known as Himalya International Ltd, announced on July 21, 2025, that the Rights Issue was offered at an issue price of ₹13.80 per share, with a ratio of 1 equity share for every 2 held. The company offered a total of 2,89,36,442 shares, against a pre-issue capital base of 5,78,72,884 shares.

🔍 Promoters Lead by Example with Full and Additional Investment

As of the record date in April 2025, the promoter group held 2.68 crore equity shares, entitling them to subscribe to 1.34 crore shares in the Rights Issue. However, showing deep commitment to the company’s turnaround plans, the promoters also subscribed to additional shares worth ₹2 crore, taking their total infusion to ₹20.51 crore.

This proactive step comes at a crucial time when the company is in the middle of restructuring its financials and rebuilding operations. The increased promoter stake also sends a strong signal of confidence to retail and institutional investors.

⚙️ Clear Plan for Utilisation of Funds

The company has laid out a targeted deployment strategy for the Rights Issue proceeds:

• Clearance of residual dues under the One-Time Settlement (OTS) with financial institutions.

• Modernisation and replacement of old operational infrastructure to enhance efficiency.

• Infusion of working capital to stabilise production, support employment, and scale exports.

This infusion is expected to reignite growth in the domestic and export markets, especially in the frozen and processed food segments, where Himalaya Food operates through its plants in Himachal Pradesh and Gujarat.

📌 Statement from the Chairman

Chairman and Managing Director Man Mohan Malik expressed gratitude to shareholders for their overwhelming support and faith in the company’s vision. He stated:

“This contribution highlights the unwavering confidence and financial support extended by the promoter group at a crucial juncture in the Company’s turnaround journey.”

The company reiterated its commitment to transparency, governance, and long-term value creation, assuring stakeholders that this capital is a key part of a broader revival roadmap.

📈 Way Forward

The successful Rights Issue is expected to strengthen the company's balance sheet, reduce financing costs, and enable better operational control. With the promoters showing the way and investors backing the issue, Himalaya Food is set to make a gradual but strong comeback in the food processing space.

The disclosure has been made to the BSE under Regulation 30 of SEBI (LODR) Regulations, 2015, and is available in the public domain for investor reference.

The company is listed on BSE with CIN: L70102DL1992PLC047399 and operates under the brand name Himalaya Food Company.

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