Suraj Industries Limited has announced significant strategic moves to strengthen its position in the distillery business and raise capital for future growth. The company's board of directors has approved two key decisions: an acquisition to increase its stake in Carya Chemicals and Fertilizers Private Limited, and a rights issue to raise funds.

Acquisition of Additional Stake in Carya Chemicals

Suraj Industries has decided to acquire 63,78,354 equity shares of Carya Chemicals and Fertilizers Private Limited for a total consideration of Rs 8.04 crore. This acquisition will be executed in two parts:

1. 22,73,234 shares from Mr. Suraj Prakash Gupta for Rs 2.86 crore
2. 41,05,120 shares from Sarth Agbev and Energy Private Limited for Rs 5.17 crore

The acquisition price is set at Rs 12.60 per share, based on a valuation report by Corporate Professionals Valuation Services Private Limited. This strategic move will increase Suraj Industries' stake in Carya from 85.75% to 95.44%, further consolidating its control over the subsidiary.

Rights Issue Approval

In a parallel development, the board has approved a rights issue of partly paid-up equity shares to raise up to Rs 120.00 crore. The company plans to offer these shares to eligible shareholders, with the record date to be announced later. A Rights Issue Committee has been authorized to decide on the terms and conditions of the issue, including the issue size, price, and entitlement ratio.

About Carya Chemicals and Fertilizers

Carya Chemicals, incorporated in May 2013, operates in the distillery business. The company recently commenced operations of its bottling plant for Indian Made Foreign Liquor and Country Liquor. Additionally, Carya is in the process of setting up a distillery for the manufacture of Extra Neutral Alcohol.

Financial Implications

The acquisition is expected to be completed within six months from the execution of the Share Purchase Agreement. It's worth noting that Carya reported nil turnover for the previous financial year, as it only began commercial operations recently.

Regulatory Compliance

Both the acquisition and the rights issue have been approved in compliance with SEBI regulations. The related party transactions involved in the acquisition were previously approved by Suraj Industries' shareholders at the 33rd Annual General Meeting.

These strategic decisions reflect Suraj Industries' commitment to expanding its presence in the distillery sector while also strengthening its capital base for future growth initiatives.

Suraj Industries Limited has reported a revision in its shareholding in Shri Gang Industries and Allied Products Limited, following a significant share capital restructuring at Shri Gang. The stake now stands at 20.10% of Shri Gang's increased paid-up equity share capital.

Share Conversion and Capital Restructuring

Shri Gang Industries and Allied Products Limited recently completed an allotment of 3,50,000 equity shares, each with a face value of Rs. 10.00. This allotment was the result of converting an equal number of 0.01% Compulsorily Convertible Preference Shares (CCPS) at a conversion price of Rs. 76.00 per share. The conversion was executed through a preferential allotment to investors in the public category.

Impact on Share Capital

As a consequence of this share conversion, Shri Gang's paid-up equity share capital has seen a notable increase:

The conversion has resulted in an increase of Rs. 35,00,000 in the paid-up equity share capital and an addition of 3,50,000 equity shares.

Regulatory Compliance

Suraj Industries Limited made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's Company Secretary and Compliance Officer, Snehlata Sharma, signed the regulatory filing.

This share capital restructuring at Shri Gang Industries and Allied Products Limited and the subsequent revision of Suraj Industries' stake highlight the dynamic nature of corporate ownership structures in the Indian market. Investors and market watchers will likely keep a close eye on any further developments or strategic moves resulting from this change in shareholding pattern.