NHC Foods Unveils Rs. 47.42 Crore Rights Issue to Boost Growth

Mumbai's NHC Foods Ltd announces a Rs. 47.42 crore Rights Issue to enhance working capital and repay loans. With a strong market position, the company marks significant financial growth in Q3, 2024. The Rights Issue opens December 5, offering shareholders an opportunity to strengthen equity at an attractive price.

Mumbai-headquartered NHC Foods Limited, a notable player in the export of agricultural commodities and spices, has declared a substantial Rs. 47.42 crore Rights Issue aimed at bolstering its working capital and managing secured loans.

The record date for this significant financial maneuver is set for November 26, 2024. The company plans to issue an astonishing 47,42,00,000 shares at a nominal price of Re. 1 each to its eligible shareholders. In stark contrast, the shares closed at Rs. 6.89 on November 22, suggesting a lucrative opportunity for current investors to expand their stakes considerably. The Rights Issue will be open from December 5 to December 18, inviting shareholders to capitalize on this rare offer.

Apoorva Shah, Chairman and Managing Director of NHC Foods, stated, "The Rights Issue proceeds will strategically support the company's expansion, aligning with our mission to enhance shareholder value and distribute shares equitably. It emphasizes our commitment to strengthening public shareholding and optimizing capital structure for robust growth."

Buoyed by a compelling market presence, NHC Foods reported impressive results for the September quarter, with revenue soaring 60.14% to Rs. 66.17 crore. Concurrently, net profit escalated by 386% to Rs. 2.09 crore. The six-month performance of FY25 depicted a 67.22% increase in revenue to Rs. 140.67 crore and an extraordinary 384.2% rise in net profit, totaling Rs. 4.06 crore.

"We are navigating an exciting high-growth path," Shah emphasized, noting the company's investment in technology, process improvements, and geographic expansion to sustain the growth momentum. NHC Foods is poised to explore new international markets while deepening its presence within India, reflecting a blend of strategic foresight and innovative product development.

(With inputs from agencies.)