AGI Greenpac To Raise Rs 1,500 Crore Through Issuance Of Shares

AGI Greenpac Ltd. on Friday approved a fund raise of Rs 1,500 crore through the issuance of shares and equity-linked securities. The funds will be raised in one or more tranches.

The glass container manufacturing company will raise funds "through one or more of the permissible modes including but not limited to public issue, right issue, preferential issue, private placement, and qualified institutions placement," according to the exchange filing.

The board on Friday also approved the postal ballot notice for seeking shareholders' approval for the proposed fundraising.

AGI Greenpac Q2 Performance

AGI Greenpac reported a 28% year-on-year rise in its standalone net profit to Rs 72.07 crore for the quarter ended September, compared to Rs 56.14 crore in the same quarter of the previous fiscal year.

Revenue decreased by 2.6% year-on-year for the three months ended September, reaching Rs 599.18 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 15% year-on-year to Rs 154.25 crore. The Ebitda margin expanded to 25.7% from 21.8% in the same period the previous year.

The company's net debt has reduced to Rs 336.4 crore as of September 2024, in comparison to Rs 557.9 crore in September 2023.

Glass container capacity utilisation of the company was around 93% this quarter, despite scheduled furnace relining and debottlenecking processes that impacted production and sales. The furnace was operational in the last week of August 2024, the company said in its investor presentation.

It also added that it had successfully commissioned a 2.8 MW solar rooftop project at its Hyderabad plant, increasing the company's overall solar capacity to 19.56 MW.

AGI Greenpac Stocks Fall Over 5%

AGI Greenpac stock fell as much as 5.24% during the day to Rs 1,217.20 apiece on the NSE. The stock closed 3.46% lower at Rs 1,239.95 per share. This compares with a 1.52% decline in the benchmark Nifty 50. It has risen 52.95% in the last 12 months and 49.82% year-to-date.

One analyst tracking the company maintains a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 43.9%.