Elitecon International is looking to strengthen its financial flexibility, with the company's board approving a fundraising plan of up to Rs 1,000 crore through a qualified institutions placement (QIP). The proposed issue could provide the company with an additional source of equity capital as it advances its broader business expansion strategy.
The board approved the proposal at a meeting held on October 12, according to the company's announcement dated October 13. The proposed fundraising may involve equity shares or other eligible securities, including instruments convertible into or exchangeable for equity shares.
The issue could be launched in one or more tranches, with the board retaining the flexibility to determine its structure and pricing in line with prevailing market conditions.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
However, the fundraising plan is not yet final. It requires shareholder approval through a special resolution, along with the necessary statutory and regulatory clearances.
Pradeep Kumar, Managing Director of Elitecon International, said the board's approval gives the company the flexibility to access capital through a regulated route when market conditions are favourable. He added that the company would proceed only after obtaining shareholder approval and meeting the applicable regulatory requirements.
Also Read | Over 130% Return In Six Months: Aditya Infotech Share Price Jumps Nearly 5%. Here's Why
The company said further details, including the issue price, timeline and intended use of proceeds, would be announced later, subject to the required approvals.
The fundraising plan comes as Elitecon works to expand beyond its established international tobacco export operations and develop a broader fast-moving consumer goods (FMCG) business. Its stated expansion roadmap includes packaged foods, edible oils and household essentials.
Headquartered in India, Elitecon International operates across more than 50 countries and has subsidiaries in the United Arab Emirates and Singapore. Founded in 1987, the company runs a manufacturing facility in Nashik, Maharashtra.
The proposed QIP is part of the company's wider revival and growth strategy under a reconstituted board and management team appointed earlier this year.
The outcome of the fundraising proposal will depend on shareholder approval, regulatory clearances and the company's final decisions on pricing and timing.
Also Read | Kotak Mahindra Life, Ashish Kacholia, Others Invest Rs 120 Crore In Fusion Cx Ahead Of IPO
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
