Shri Gang Industries and Allied Products Limited has taken significant steps to strengthen its capital structure through a series of preferential allotments to its promoter group entities. The company's Preferential Issue Committee has approved two key transactions that will inject a total of ₹20.42 crore into the firm.

Conversion of Unsecured Loans

The company has allotted 13,13,131 Compulsorily Convertible Preference Shares (CCPS) at ₹99.00 per share to Express Infra Financial Consultancy Private Limited, a promoter group entity. This move converts outstanding unsecured loans worth ₹12.99 crore into equity, potentially improving the company's debt-to-equity ratio.

Warrant Allotment for Cash Infusion

In addition to the CCPS allotment, Shri Gang Industries has also issued 7,50,000 Fully Convertible Warrants at ₹99.00 per warrant to Varun Gupta, another promoter group entity. This allotment will bring in a cash consideration of ₹7.42 crore, providing the company with additional liquidity.

Impact on Capital Structure

The dual transactions will have a significant impact on the company's capital structure:

Strategic Implications

These allotments suggest a strong commitment from the promoter group to the company's financial health and future growth prospects. The conversion of unsecured loans to equity not only strengthens the balance sheet but also aligns the interests of the promoters more closely with those of other shareholders.

The cash infusion from the warrant issue could provide Shri Gang Industries with additional working capital or funds for potential expansion plans, although the specific use of proceeds has not been disclosed in the available information.

Regulatory Compliance

The company has emphasized that these allotments are in accordance with the provisions of SEBI (ICDR) Regulations, 2018, ensuring compliance with regulatory requirements for preferential issues.

As Shri Gang Industries implements these capital structure changes, investors and market watchers will likely keep a close eye on how the company utilizes this strengthened financial position to drive growth and create value for shareholders.

Shri Gang Industries and Allied Products Limited has released its unaudited financial results for the first quarter, showcasing a slight increase in revenue amidst a decline in profitability. The company has also announced the appointment of a new Internal Auditor for the fiscal year.

Financial Performance

The company reported a marginal increase in revenue from operations, which stood at INR 8,554.40 crore for Q1, compared to INR 8,473.93 crore in the same quarter of the previous year, representing a growth of about 0.95%.

However, the company's profitability saw a significant decline:

The net profit after tax decreased by 59.20%, from INR 234.60 crore in Q1 of the previous year to INR 95.71 crore in the current Q1. Consequently, the basic earnings per share (EPS) also declined from INR 1.31 to INR 0.53.

Segment-wise Performance

Shri Gang Industries operates in two business segments: Edible Oil Operations and Liquor Operations. The Liquor Operations segment continued to be the primary revenue driver for the company:

• Liquor Operations: Contributed INR 8,553.78 crore to the total revenue
• Edible Oil Operations: Contributed INR 0.62 crore to the total revenue

Appointment of Internal Auditor

In a separate development, the Board of Directors has approved the appointment of M/s Mohan Gupta & Co., Chartered Accountants, as the Internal Auditor of the company for the financial year. The appointment was made on the recommendation of the Audit Committee.

M/s Mohan Gupta & Co. is a peer-reviewed firm established in 1986, specializing in Assurance & Advisory, Tax & Regulatory, and Risk Advisory services. The firm brings over three decades of experience to its role as Internal Auditor for Shri Gang Industries.

Board Meeting Details

The financial results were reviewed by the Audit Committee and subsequently approved by the Board of Directors at their respective meetings held on August 13. The Board meeting commenced at 02:30 P.M., although the conclusion time was not specified in the available information.

Shri Gang Industries and Allied Products Limited continues to navigate challenging market conditions, as evidenced by the pressure on its profitability despite a slight increase in revenue. The company's focus remains on its core segments of Liquor Operations and Edible Oil Operations, with the former contributing significantly to the overall revenue.