Add-Shop E-Retail, a leading producer and distributor of animal feed supplements and organic fertilisers, will raise ₹49 crore through rights issue which opens on Wednesday.
Offered at ₹54 per share, the rights issue is at a discount of 36 per cent to the closing price of ₹84 a share logged on August 11 on BSE. The issue closes on August 30.
Finshore Management Services is the lead manager of the issue.
It will issue 90,56,255 fully paid-up equity shares of face value of ₹10 each on a rights basis to eligible equity shareholders in the ratio of one new equity shares for every one held.
Post issue, total outstanding shares of the company will increase to 2,83,12,956 equity shares from 1,92,56,701 equity shares as of June-end.
Last date for on-market renunciation of rights entitlements is August 24.
The funds raised through the issue will be used to meet the working capital for expansion, entering new markets and for general corporate purposes.
Dinesh Pandya, Managing Director, Add-Shop E-Retail said the company plans to expand product line, add more channel partners and hire more farmers and associates.
The manufacturing capacity will increase to 30 million tonnes per annum with installation of new machines, he said.
Add-Shop E-Retail was founded by a visually challenged Dineshbhai Pandya—a first-generation entrepreneur.
The company's product offering has expanded to 120 items, with 10 distinct agriculture products and the remaining in other categories. It has a network of over 6,500 distributors and 2,000 franchises across the country.
The company promotes organic farming and produces organic farm goods in the country.