FMCG company Sarveshwar Foods has announced that its board of directors has approved fundraising by way of a preferential issue and Qualified Institutional Placement (QIP) to meet the company’s long-term business growth plans and to augment the long-term financial resources. 

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According to an exchange filing, the company will raise Rs 98.94 crore by means of preferential issue.

"By way of creating, issuing and allotting up to 10,20,00,000 (Ten Crores and Twenty Lakhs Only) fully Convertible Warrants ('Warrants'), carrying a right exercisable by the Warrant holder to subscribe to one Equity Share having face value of Re.1/- per Warrant, to persons belonging to “Non-Promoter, Public Category”, as detailed in Annexure-I, on preferential basis at an issue price of Rs. 9.70/- (Nine Rupees and Seventy Paisa Only) per Warrant, which is higher than the floor price," the company said in an exchange filing.

Along with this, the company has also given approval to raise equity shares worth Rs 100 crore through Qualified Institutional Placement, ADR, GDR, FCCB or other methods.

"By issuance and allotment of equity shares for another aggregate amount not exceeding Rs. 100 Crore (Rupees One Hundred Crore), by way of QIP’s, ADR, GDR, FCCB or any other method or combination thereof including series of Right Issue(s), each tranche not exceeding Rs 50 Crore," the filing reads.