NHC Foods Rs 47.42 Crore Rights Issue To Open On Dec. 5

The rights issue for NHC Foods Ltd. is set to open on Dec. 5. The rights issue is being offered to eligible shareholders in the ratio of four rights equity shares for each fully paid-up share held.

The company aims to raise Rs 47.42 crore to strengthen its working capital and repay secured working capital loans, the company said in an exchange filing on Monday. The issue is expected to close on Dec. 18.

The record date for the issue was set as Nov. 26, and the renunciation of rights entitlement period is Dec. 5 to Dec. 12.

"By offering shares at a potentially attractive price, we aim to strengthen public shareholding and optimise the company’s capital structure," said Apoorva Shah, chairman and managing director of NHC Foods.

Out of the issue proceeds, the company intends to use Rs 25 crore towards working capital requirements, Rs 15 crore to make the repayment of secured loans, and Rs 7 crore for general corporate purposes, reported PTI.

The exporter of agricultural commodities and spices in July executed a 10:1 share split. The move was made to boost liquidity and make the shares more accessible to investors.

NHC has been a leading exporter of premium agricultural commodities and spices since 1960. The firm now exports spices, food grains, oil seeds, pulses, and dry fruits. NHC serves over 30 countries with its signature brands, such as Indi Bite, Eat'mor, and Saaz.

With a strong focus on technology upgrades, process improvements, and market diversification, NHC is expanding its footprint both in India and in new international markets.

Shares of NHC Foods hit the upper circuit on Monday and rose 4.71% during the day to Rs 2.89 apiece on the BSE. It closed 3.99% higher at Rs 2.87 apiece. This compares to a 0.25% increase in the Sensex. It has risen 87.80% in the last 12 months and 113.97% year-to-date.