In Tuesday’s trading session, the shares of one of the organised Agri-Input company in India hit a 5% lower circuit on NSE to Rs. 415.75, after announcing a rights issue at a discount of 47%.
The shares of Nirman Agri Genetics Limited opened at Rs. 432, down by 1.3 percent, as compared to its previous closing price of Rs. 437.6, with a market cap of Rs. 247.8 crores.
What’s the News:
According to the latest regulatory filings with the NSE, the Board of the Nirman Agri Genetics Limited approved the issue of equity shares of the company by way of a rights issue.
The company plans to issue up to 20.5 lakh equity shares with a face value of Rs. 10 each, at a premium of Rs. 229 per share. This pricing represents a discount of 45 percent from the current trading price of Rs. 415.75.
The rights issue is aimed at raising funds up to Rs. 49 crore. The subscription for the rights issue will open on 5th August 2024 and close on 23rd August 2024, while the last date for on Market Renunciation of Rights Entitlement is set on 19th August.
Further, the Board has fixed 29th July as the record date to determine the equity shareholders who shall be entitled to receive the Rights Entitlement in the Rights Issue.
Previous News:
On 15th July, Nirman Agri received a Membership Certificate of the Agricultural and Processed Food Products Export Development Authority (APEDA).
This certification is expected to significantly increase the exports of the company across multiple sectors, leading to increased revenue through export business.
Furthermore, it will facilitate the global expansion of the company’s products and services, thereby promoting business growth on an international scale.
Financials:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of 121.3 percent from Rs. 29 crore in FY22-23 to Rs. 63.3 crore in FY23-24.
Similarly, its net profit increased during the same period from Rs. 4 crore to Rs. 10.4 crore, indicating a growth of 160 percent YoY.
Nirman Agri is seeking 250 percent growth in revenue and profit margins on the conservative side in the current year, and the upcoming international federation tie-up will help the company to achieve targets this year. The company has an advance order book for the rabi season is about Rs. 120 crores.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters hold a 66.05 percent stake in the company, while the Retail Investors hold a 33.95 percent in Nirman Agri Genetics Limited.
About the company:
Incorporated in 2020, Nirman Agri Genetics Limited is engaged in the business of production, processing and marketing of high-quality hybrid seeds, Pesticides, and Bio-organic for different crops like corn, sunflower, cotton, paddy, grain sorghum, etc. and has recently forayed into micronutrients and bioproducts, along with producing non-hybrid seeds, primarily for paddy.
Written by Shivani Singh
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