NHC Foods Limited, a prominent player in the food industry, has taken a significant step to bolster its financial position through a preferential allotment of warrants. The company's Board of Directors has approved the issuance of 6.5 crore fully convertible warrants, a move that could potentially inject substantial capital into the firm's operations.

Key Details of the Warrant Allotment

Financial Implications

The warrant issue has immediate and potential long-term financial implications for NHC Foods:

1. Immediate Capital Infusion: The company has received 25% of the total consideration, amounting to Rs 2,03,12,500, as an upfront payment.
2. Future Funding: The remaining 75% (Rs 6,09,37,500) will be payable upon conversion of the warrants into equity shares.

Regulatory Compliance and Approval

The allotment adheres to regulatory requirements:

• Approved in accordance with the special resolution passed by shareholders at the Extraordinary General Meeting held on July 18.
• Complies with Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Corporate Governance

The Board meeting that approved this allotment took place on September 5, commencing at 6:00 pm and concluding at 7:30 pm. This information was promptly disclosed to the BSE Limited, demonstrating NHC Foods' commitment to transparency and regulatory compliance.

Potential Impact on Ownership Structure

While the current allotment is to a non-promoter public investor, the conversion of these warrants into equity shares could potentially alter the company's ownership structure. Shareholders will be keenly watching how this development unfolds over the 18-month conversion period.

Upcoming Annual General Meeting

In addition to the warrant allotment, the Board has approved several items related to the company's 33rd Annual General Meeting:

• Scheduled for September 30, at 11:30 am through Video Conferencing/Other Audio-Visual Means.
• Appointment of Mr. Dinesh Deora as the Scrutinizer for the voting process.
• Book closure dates set from September 23 to September 30 (both days inclusive).

This strategic financial move by NHC Foods reflects the company's efforts to strengthen its capital base. As the food industry continues to evolve, the additional funds could provide NHC Foods with the resources needed for potential expansion, debt reduction, or other strategic initiatives. Investors and market analysts will be closely monitoring how the company utilizes this capital infusion to drive growth and enhance shareholder value in the coming months.

NHC Foods Limited has announced several key updates, including a revision in its quarterly financial results, new auditor appointments, and confirmation of its rights issue fund utilization.

Revised Financial Results

The company has submitted revised unaudited financial results for the quarter ended June, correcting a typographical error in its Earnings Per Share (EPS) figures. The Basic and Diluted EPS for the quarter have been revised from Rs. 0.11 to Rs. 0.03. NHC Foods clarified that this was an inadvertent error, and no other figures in the previously published results have changed.

Financial Performance

For the quarter ended June 30, NHC Foods reported:

The company's revenue from operations stood at Rs. 11,050.90 lakhs, with a total income of Rs. 11,059.56 lakhs for the quarter. The profit before tax was Rs. 225.96 lakhs, resulting in a profit after tax of Rs. 166.60 lakhs.

Corporate Governance Updates

The Board of Directors has approved several key appointments:

1. Re-appointment of DMS & Company, Chartered Accountants (FRN: 001169C) as Internal Auditors for the Financial Year 2025-2026.
2. Recommendation for the appointment of DM & Associates Company Secretaries LLP as Secretarial Auditors for five consecutive years from FY 2025-26 to FY 2029-30, subject to shareholder approval at the upcoming Annual General Meeting.

Rights Issue Fund Utilization

NHC Foods confirmed that there has been no deviation or variation in the use of proceeds from its Rights Issue, which raised Rs. 47.42 crores in December 2024. The funds have been utilized as follows:

The company's Audit Committee has reviewed and confirmed the utilization of funds as per the stated objectives.

Consolidated Financial Results

On a consolidated basis, NHC Foods reported a total income of Rs. 11,059.56 lakhs and a profit after tax of Rs. 166.60 lakhs for the quarter ended June 30. The consolidated financial results include the performance of its foreign subsidiary, Intra Metal Trading LLC FZ, which became a subsidiary of NHC Foods Limited on April 24, 2024.

NHC Foods Limited continues to operate in the "Food processing Business" segment, as per Ind AS 108 "Operating Segment". The company's management remains focused on maintaining transparency and compliance with regulatory requirements while pursuing growth opportunities in the food processing sector.