On July 29, 2025, Tilaknagar Industries Ltd (“the Company”) announced the outcomes of its Board meeting held the same day. The Board approved several key corporate actions aimed at strengthening the company’s financial structure and supporting its expansion plans.

Increase in Authorized Share Capital

The Board approved an increase in the Company’s authorized share capital from Rs. 226.05 crore (22.60 crore equity shares of Rs 10 each) to Rs. 310 crore (31 crore equity shares of Rs 10 each). This amendment to Clause V of the Memorandum of Association is subject to approval by the shareholders at the forthcoming Extraordinary General Meeting (“EGM”) and relevant regulatory authorities.

Preferential Issue of Equity Shares and Convertible Warrants

The company intends to issue equity shares and convertible warrants on a preferential basis to raise substantial funds:

• Equity Shares: Up to 1,43,80,000 equity shares at Rs 382 per share (including a premium of Rs 372) aggregating approximately Rs. 549.32 crore. These shares will be allotted to nine non-promoter investors as detailed in the disclosures.

• Convertible Warrants: Up to 4,57,15,000 warrants, convertible into equal equity shares, priced at Rs 382 each, aggregating approximately Rs. 1,746.31 crore. These will be allotted to 35 investors, including promoters and non-promoters.

The warrants can be converted into equity shares within 18 months from allotment. On allotment of warrants, 25% of the price is payable upfront, and the balance 75% is payable at conversion.

Investors and Shareholding Pattern

The preferential issue involves reputed institutional and individual investors including SMALLCAP World Fund, Cohesion MK Best Ideas Sub-Trust, Bandhan Focused Fund, and key promoters like Amit Arun Dahanukar and Axana Estates LLP.

Post issue and full conversion of warrants, the shareholding pattern is expected to significantly change, with the promoters holding approximately 13.72% and the collective shareholding of non-promoters rising to about 36.43%.

Upcoming Extraordinary General Meeting

An EGM will be held on August 20, 2025, at 10:30 a.m. IST via Video Conferencing/Other Audio Visual Means to seek shareholder approval for the proposed increase in authorized capital and preferential allotments. Notice for the EGM will be sent to members registered as on July 25, 2025.

Monitoring Agency Appointment

The Board appointed CRISIL Ratings Limited, a SEBI-registered credit rating agency, as the Monitoring Agency for this preferential issue to ensure compliance and transparency.

Expansion Plans

Additionally, the Board approved an expansion project for Prag Distillery Pvt Ltd, the Company's wholly owned subsidiary, authorizing financial assistance of approximately Rs. 34 crore to support the initiative.

This preferential issue and capital raise initiative aims to bolster Tilaknagar Industries’ financial position, enabling growth and operational expansion while providing a robust framework for investor participation.

The Upcoming IPOs in this week and coming weeks are Highway Infrastructure, Flysbs Aviation, Part Electricals & Engineering, Jyoti Global Plast, M&B Engineering, Cash Ur Drive Marketing, Renol Polychem, Jyoti Global Plast, Takyon Networks, Mehul Colours, Sri Lotus Developers & Realty, Jyoti Global Plast, B.D. Industries (Pune), NSDL.

The Current active IPO are Aditya Infotech, Lakshmi India Finance, Kaytex Fabrics, Umiya Mobile, Repono, Shree Refrigerations, Sellowrap Industries, Shanti Gold International, Patel Chem Specialities.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.