Tilaknagar Industries Ltd. (TIL), a leading Indian-Made Foreign Liquor (IMFL) manufacturer, has unveiled an ambitious ₹2,296 crore fundraising plan through a preferential issue of equity shares and convertible warrants. This announcement comes as the company's shares experienced a 4.55% decline, closing at ₹486.85 after reaching their 52-week high the previous day.

Fundraising Details

The company's board has approved a two-part preferential issue:

1. Equity Shares: TIL will issue up to 1,43,80,000 equity shares at ₹382 per share, raising approximately ₹549.32 crore.
2. Convertible Warrants: The company will issue up to 4,57,15,000 convertible warrants at ₹382 per warrant, potentially raising ₹1,746.31 crore.

This fundraising initiative involves a total of 44 investors, with 9 investors contributing ₹549 crore through equity shares and 35 investors raising ₹1,747 crore through warrants.

Investor Participation

Notable participants in this fundraising round include:

• SMALLCAP World Fund, Inc. (65,50,000 equity shares)
• Axana Estates LLP (98,15,000 warrants)
• TIMF Holdings (60,00,000 warrants)
• Abakkus Asset Manager funds (multiple entities participating)
• Bandhan Mutual Fund (13,25,000 equity shares)

Chairman Amit Dahanukar, demonstrating strong support for the company's growth plans, leads the promoter participation with a ₹306 crore warrant subscription for 80,00,000 warrants.

Utilization of Funds

The company intends to use the proceeds for:

1. Acquisition of the Imperial Blue brand
2. Working capital requirements
3. General corporate purposes

Expansion Plans

In a separate development, TIL's wholly-owned subsidiary, Prag Distillery (P) Ltd, has received an extension on its Letter of Intent (LOI) for expanding its bottling capacity by 200 lakh proof liters (approximately 30 lakh cases per annum) in Andhra Pradesh. The company's board has approved financial assistance of approximately ₹34 crore for this expansion project.

Company Background

Tilaknagar Industries, with a rich legacy spanning over 90 years, operates 19 manufacturing units across 12 states in India. The company's brand portfolio includes popular names such as Mansion House and Courrier Napoleon brandies, Mansion House Whisky, Madiraa Rum, and Blue Lagoon Gin.

This fundraising initiative and expansion plans mark significant milestones in TIL's growth trajectory, reflecting strong investor confidence in the company's long-term vision and potential in the IMFL industry.

Tilaknagar Industries Ltd (TIL), a leading Indian-Made Foreign Liquor (IMFL) manufacturer, has announced a significant move to finance its recent acquisition of the Imperial Blue whiskey brand from Pernod Ricard. The company's board has approved a preferential issue of equity shares and warrants worth Rs 2,296.00 crore, marking a pivotal step in TIL's growth strategy.

Preferential Issue Details

The preferential issue, priced at Rs 382.00 per security, will see participation from 44 investors, including promoters and existing stakeholders. The issue is structured as follows:

• Equity Shares: Nine investors will subscribe to equity shares, contributing Rs 549.00 crore.
• Convertible Warrants: 35 investors will participate through warrants, raising Rs 1,747.00 crore.

Key Participants

• Promoter Involvement: The promoter group, led by Mr. Amit Dahanukar, Chairman and Managing Director of TIL, will subscribe to warrants worth Rs 306.00 crore, demonstrating strong support for the company's expansion plans.
• Notable Investors: The issue has attracted a mix of institutional and individual investors, including:
  • SMALLCAP World Fund Inc
  • Axana Estates LLP
  • TIMF Holdings
  • Abakkus Asset Manager managed funds
  • Bandhan Mutual Fund

Funding the Imperial Blue Acquisition

This fundraising initiative is primarily aimed at financing TIL's acquisition of the Imperial Blue business from Pernod Ricard, a deal valued at Rs 4,150.00 crore. The acquisition marks TIL's strategic entry into the whiskey segment, which represents approximately two-thirds of India's spirits market.

Expansion of Capital Base

To accommodate this substantial capital raise, TIL's board has also approved an increase in the company's authorized share capital from Rs 226.05 crore to Rs 310.00 crore.

Strategic Implications

Mr. Amit Dahanukar, commenting on the development, stated, "This equity issue, along with our proposed debt fundraise, ensures an optimal financing mix for the Imperial Blue acquisition. It marks a significant milestone in TIL's growth trajectory and reflects strong investor confidence in our long-term vision and potential."

Future Outlook

The acquisition of Imperial Blue is expected to significantly bolster TIL's position in the Indian spirits market. The company plans to leverage this new asset to expand its product portfolio and market reach, potentially reshaping the competitive landscape in the IMFL sector.

Conclusion

Tilaknagar Industries' move to raise Rs 2,296.00 crore through a preferential issue demonstrates the company's ambitious growth plans and its ability to attract significant investor interest. As the company prepares to integrate the Imperial Blue brand into its portfolio, the Indian spirits market watches closely to see how this strategic move will unfold in the coming months.