Tejassvi Aaharam Limited has acquired 100% of Funk Foods Private Limited for a total consideration of Rs 51,16,22,040 through a share swap mechanism. The Board of Directors approved the allotment of 5,11,62,204 fully paid-up equity shares at a price of Rs 10 each to the shareholders of Funk Foods Private Limited on July 20, 2026. This strategic acquisition aims to achieve a significant milestone in the evolution of both companies, benefiting all stakeholders including shareholders at large.

The acquisition was approved by shareholders via a postal ballot and received in-principle approval from BSE Limited. Funk Foods Private Limited, incorporated on January 28, 2022, is engaged in the development, manufacturing, and export of freeze-dried, clean-label food products. The entity reported a turnover of Rs 7.97 crores for the financial year ended 2025, up from Rs 1.71 crores in the previous year.

Acquisition Details

The transaction does not fall under related party transactions, and the promoter group has no interest in the acquired entity. The newly allotted shares will rank pari passu with the existing equity shares of Tejassvi Aaharam Limited. The disclosure was submitted to the stock exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Tejassvi Aaharam Ltd has secured in-principle approval from the Bombay Stock Exchange (BSE) to issue 5,11,62,204 fully paid-up equity shares to non-promoters on a preferential basis. The shares, carrying a face value of ₹10 each, will be issued at an issue price of ₹10 per equity share pursuant to a share swap arrangement. This regulatory nod allows the company to proceed with the proposed allotment, subject to compliance with the Companies Act, 2013, and SEBI regulations.

The approval, conveyed via BSE letter reference LOD/PREF/PB/FIP/479/2026-27 dated July 7, 2026, was intimated to the exchange on July 8, 2026. The company must ensure strict adherence to the provisions of the Companies Act, 2013, the Securities Contracts (Regulation) Act, 1956, and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR Regulations) during the issue and allotment process.

Regulatory Conditions and Compliance

The BSE has stipulated specific conditions to prevent non-compliance regarding trading activities by the proposed allottees. Tejassvi Aaharam is advised to strengthen internal controls to monitor trades executed by the allottees in the company's scrip. The company must obtain an undertaking from the allottees confirming that they will not engage in intra-day trading or sell any shares in the company until the allotment date.

The responsibility for verifying this undertaking and ensuring compliance with Regulation 167(6) of the SEBI ICDR Regulations, 2018, lies solely with the issuer. Any non-compliance observed by the exchanges post-allotment may impact the listing of these shares.

Post-Allotment Requirements

Upon allotment of securities, the company is required to submit a listing application without delay, along with applicable fees, in accordance with Regulation 14 of the LODR Regulations. As per Schedule XIX – Para (2) of the ICDR Regulations, the issuer must apply for listing within twenty days from the date of allotment to one or more recognized stock exchanges. Failure to comply with this timeline will attract penalties specified in the SEBI circular dated June 21, 2023.

The BSE reserves the right to withdraw the in-principle approval if the information provided is found to be incomplete, incorrect, misleading, or false, or if it contravenes any rules, bye-laws, and regulations of the exchange or other statutory authorities.

Key Details of the Preferential Allotment