MRC Agrotech Ltd has filed an application with BSE Limited seeking in-principle approval for a preferential issue of equity shares under Regulation 28(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has applied to issue 21.97 lakh equity shares for cash and 86.42 lakh shares for non-cash consideration on a preferential basis.

Preferential Issue Structure

The company proposes to issue equity shares in two tranches through preferential allotment. The issue comprises both cash and non-cash components, with specific allocations for different investor categories.

The issue price of ₹19.50 per share includes a face value of ₹10.00 and a premium of ₹9.50 per share. This pricing is determined based on the floor price calculated according to Chapter V of the SEBI ICDR Regulations.

Revised Fund Utilization Plan

The company issued a disclosure under Regulation 30 on December 19, 2025, significantly revising the utilization of preferential issue proceeds. The Board of Directors decided that no part of the preferential issue proceeds will be utilized towards repayment or pre-payment of borrowings, as all outstanding short-term obligations were repaid from internal accruals prior to June 2025.

Working Capital Deployment Strategy

The incremental working capital requirement of ₹313.30 lakhs is based on CMA workings prepared using the last 3 years audited financials. The deployment is planned between January 2026 and March 2026.

Future Funding Requirements

An additional ₹100.00 lakhs has been earmarked for future funding requirements, specifically focusing on R&D facility setup, product launches, and expansion into nutraceuticals.

R&D Facility Development

The company plans to establish a pilot R&D facility at Belapur, Thane, with an estimated cost of ₹30.00 lakhs. The facility will focus on bio-formulation development and include specialized equipment for fermentation, sterilization, analytical testing, and processing.

Product Launch Activities

The company has allocated ₹20.00 lakhs for product launch activities, focusing on two proprietary formulations from the MARSAPI IP portfolio.

Nutraceuticals and Soil Health Expansion

The company has earmarked ₹25.00 lakhs for initial expansion into nutraceuticals and soil health management products, covering the feasibility and development phase.

Non-Cash Component - Acquisition Strategy

The non-cash component of 86,42,097 shares, aggregating to ₹16,85,20,896, is intended for the acquisition of 100% shareholding in MARSAPI Lifesciences Private Limited. This share swap arrangement involves issuing company shares to the existing shareholders of the target company as consideration for their equity stakes.

Authorized Capital Enhancement

To accommodate the preferential issue, the company proposes to increase its authorized share capital from ₹20,50,00,000 to ₹35,50,00,000, divided into 3.55 crore equity shares of ₹10 each. This increase requires amendments to the Memorandum and Articles of Association.

Regulatory Compliance

The preferential issue is subject to various regulatory approvals and compliance requirements. The company has obtained valuation reports from registered valuers and ensured compliance with SEBI ICDR Regulations. The equity shares proposed for allotment will be subject to lock-in periods as specified under Chapter V of the SEBI ICDR Regulations.

The allotment is expected to be completed within 15 days from the date of passing the special resolution by members, subject to receipt of necessary regulatory approvals. The company has undertaken to maintain transparency in disclosures and ensure utilization of proceeds strictly in line with applicable SEBI ICDR Regulations.

MRC Agrotech Limited has announced a strategic move into the premium tea market by signing an exclusive three-year marketing and distribution agreement with Temi Tea Estate, a government undertaking of Sikkim. The deal, inked on October 14, 2025, positions MRC Agrotech to promote, market, and distribute Sikkim Tea across India and international markets.

Key Agreement Details

About Temi Tea Estate

Temi Tea Estate, established in 1969, holds a unique position as Sikkim's sole tea estate. Operating under the Commerce & Industries Department of the Government of Sikkim, it produces certified organic tea with Geographical Indication (GI) registration for "Sikkim Temi Tea."

Strategic Implications

This collaboration marks a significant step for MRC Agrotech in expanding its value chain integration into premium tea and beverage products. The company aims to strengthen its long-term Agri-based business verticals through this partnership.

Financial Outlook

While MRC Agrotech anticipates no immediate material financial impact from this agreement, the company expects enhanced revenue streams and brand equity over the medium term. The deal aligns with MRC's ordinary course of business in agricultural and allied product operations.

Market Positioning

By securing exclusive rights to market and distribute Temi Tea, MRC Agrotech is poised to establish a strong presence in the premium tea segment. This move could potentially differentiate the company in the competitive Indian tea market, leveraging the unique qualities of Sikkim's organic, GI-tagged tea.

The agreement underscores MRC Agrotech's strategic focus on value-added agricultural products and its ambition to expand its footprint in the beverage industry. As the Indian tea market continues to evolve, with increasing consumer preference for premium and organic options, this partnership could prove to be a significant growth driver for MRC Agrotech in the coming years.

Investors and market watchers will likely keep a close eye on how this agreement translates into tangible benefits for MRC Agrotech, particularly in terms of revenue growth and market share in the premium tea segment.