Indong Tea Company to Raise Rs 270 Crore Through Preferential Share Issue

Indong Tea Company Limited has announced significant corporate actions, including an increase in authorized share capital and a substantial preferential share issue. The company's board has approved these measures, which are now subject to shareholder approval.

Authorized Share Capital Increase

The board of Indong Tea Company Limited has given its approval to increase the company's authorized share capital from Rs 16.00 crore to Rs 24.50 crore. This decision reflects the company's strategic move to create room for potential growth and capital raising activities.

Preferential Share Issue

In a major development, the board has also approved a preferential issue of up to 90 lakh equity shares. The shares will be issued at a price of Rs 30.00 per share, comprising a face value of Rs 10.00 and a premium of Rs 20.00 per share. This move is expected to raise approximately Rs 270.00 crore for the company.

Allocation of Preferential Issue

The preferential issue will be allocated to a total of 26 investors. This group includes:

• Promoters: Hariram Garg and Rajesh Garg
• Related entities: Asian Tea and Export Ltd, IBM Finance and Investment Private Limited, among others

Shareholder Approval Process

To seek shareholder approval for these significant corporate actions, an Extraordinary General Meeting (EGM) has been scheduled for January 8, 2025. The approval will be sought through a special resolution.

Key Dates

This capital raising initiative by Indong Tea Company Limited marks a significant step in the company's financial strategy. The successful completion of this preferential issue could provide the company with substantial funds for its future plans and operations.

Shareholders and potential investors should note that these corporate actions are subject to shareholder approval at the upcoming EGM. The outcome of this meeting will be crucial in determining the company's capital structure and financial position going forward.