Rights issue per share Rs. 54 which on August 11 will be Rs. The closing share price of 84.25 is at a 36 percent discount. The rights issue will open on August 17 and close on August 30
Ahmedabad, a leading company in manufacturing and distribution of Ayurveda Supplements, Herbal Cosmetics, Personal Care Range, Animal Feed Supplements and Organic Fertilizers, Ad-Shop E-Retail Limited on August 17, 2022, announced its Rs. 48.90 crore rights issue is going to be opened.
The funds raised through the issue will be used to fund the company’s expansion plans, entry into new sectors and other general corporate purposes ie working capital requirements. Rights issue per share Rs. 54 has been offered
That is on August 11 on BSE Rs. A 36 percent discount from the closing share price of 84.25. The rights issue will close on August 30, 2022. Finshore Management Services Limited will be the lead manager of the issue.
Company equity per share Rs. 54 (including premium of Rs. 44 per equity share) in cash at Rs. 10 will issue one such 90,56,255 fully-paid equity shares of face value of Rs. 48.90 crores.
This rights issue will be offered on a rights basis to eligible equity shareholders in the ratio of 1:1 (one equity share for every one fully paid equity share held by each eligible equity shareholder of the company on the record date). The deadline for on-market waiver of rights entitlement is August 24, 2022.
Commenting on this, Mr. Dinesh Pandya, Chairman & Managing Director, Ad-Shop E-Retail Limited said, “The company has taken important strategic initiatives in recent times focusing on expanding the product line, adding more channel partners and acquiring more farmers and collaborators.
Our long-term focus is to invest in growth through new product launches and expansion of retail footprints. With the recent installation of the new line, the company’s machinery production capacity will increase to 30 million metric tons per annum. The performance of the issue will further strengthen the company’s balance sheet and help fund its strategic growth initiatives.”
Ad-Shop E-Retail Limited was founded by Mr. Dineshbhai Pandya, a Divyang and first generation entrepreneur, trainer and entrepreneur. The company wants to promote healthy living and its solutions to solve the two biggest problems of the country namely unemployment and ill health. The company has cruelty-free 100 percent Ayurvedic products with no chemicals. Ad Shop has made it to the Top 100 SME Awards in the year 2018-19.
After the rights issue, the total outstanding shares of the company will increase from 1,92,56,701 equity shares to 2,83,12,959 equity shares as on June, 2022. In the financial year 2022, the company will spend Rs. 19.1 crores net profit has been recorded. Which of the financial year 2021 Rs. 7.7 crores showing an increase of 148 percent over the net profit.
Total sales in FY 2022 will be Rs. 159.7 crore which is Rs. 78.6 crore was 103 percent higher than sales. The company has registered a strong CAGR of 92 percent in sales and 180 percent in net profit and 64 percent ROE and 67.8 percent ROCE in the last three years. The promoter group holding in the company stood at 52.97 percent as on June 30, 2022.
Ad-Shop E-Retail Limited is one of the leading companies in the country to promote organic farming and manufacture organic farm goods. Starting with just two goods in agriculture and eight in other categories in 2015, the company has over time expanded its product offering to 120 items.
Out of which 10 are different agricultural products and the rest are in other categories. The company has a strong network of over 6500 distributors and 2000 franchisees across the country.
