Ajooni Biotech Ltd, leading and a PURE VEG animal health care solutions company is scheduled to open its Rs 43.81 crore rights issue on May 21, 2024. The funds raised through the issue will be utilised to finance expenditure towards acquisition of Land, site development and civil work, to acquire the plant & machinery part finance the working capital requirement and corporate purposes. Right issues of the company are offered at a price of Rs. 5 per share - over 20% discount to closing share price of Rs. 6.5 per share on 18 May, 2024. Rights Issue closes on 31st May, 2024. Company promoter group is also participating in the rights issue.
The Company will issue 8,76,13,721 fully paid-up Equity Shares of the face value of Rs. 2 each for cash at a price of Rs. 5 per Equity Share aggregating to Rs. 43.81 crore. The Rights entitlement ratio for the proposed issue is fixed at 1:1 (1 equity shares of face value of Rs. 2 each for every 1 equity share held by the equity shareholders on the record date - May 7, 2024). The last date for On-market Renunciation of Rights Entitlements is 27 May, 2024.
Company is planning to establish a new plant with an investment of Rs. 16.50 crore at G.T. Road in Khanna, Punjab spanning 87,000 sq ft. CRISIL Limited has raised the company's long-term credit facilities ratings to "CRISIL BB+/ Stable". This upgrade underscores the company's ongoing efforts to improve risk profile, revenue streams, and operational profitability. On 17 May 2024, the company signed an MOU with Unati Agri Allied & Marketing Multi state Cooperative Society Limited. This partnership aims to enhance PURE VEG. Cattle feed business. As part of its strategic growth plan, Ajooni will adopt modern irrigation techniques for cultivating Moringa plants in collaboration with UAMMCL. In the next 2-3 years the company projects its turnover to reach in the range of Rs. 250-270 crore in FY 2026-27 and anticipates a PAT margin of 5% of the turnover.
Mr. Jasjot Singh, Managing Director, Ajooni Biotech Ltd said, "We specialize in offering high-quality, pure veg cattle feed & pure veg supplements that cater to the dietary needs of cattle. With our focus on animal health and welfare, we're committed to providing farmers with the best possible solutions for their cattle. We're now entering the B2C market, marking a significant expansion of our business scope. This new initiative will allow us to reach individual consumers directly, offering them a wider range of products and services. It will also improve the top line and bottom line of the Company. Proceeds of the issue will further strengthen the company's balance sheet and help fund its expansion plans and strategic growth initiatives."