Tilaknagar Industries Limited, a prominent player in the Indian spirits industry, has announced a significant corporate action involving its promoter, Amit Dahanukar. On November 20, 2025, Mr. Dahanukar executed a non-disposal undertaking, creating an encumbrance over 5,41,30,375 equity shares, representing approximately 26% of the company's shareholding.

Key Details of the Encumbrance

• Beneficiary: Catalyst Trusteeship Limited (acting as security trustee)
• Number of Shares: 5,41,30,375
• Percentage of Shareholding: Approximately 26%
• Date of Execution: November 20, 2025

Financing Arrangement

The encumbrance is related to financing arrangements with six major lenders:

1. ICICI Bank Limited
2. JPMorgan Chase Bank, N.A.
3. Kotak Mahindra Bank Limited
4. Avendus Finance Private Limited
5. Poonawalla Fincorp Limited
6. Piramal Finance Limited

Terms of the Undertaking

As part of the non-disposal undertaking, the promoter group has agreed to:

1. Maintain at least 26% shareholding in Tilaknagar Industries Limited on a fully diluted basis
2. Refrain from creating any additional encumbrances on their shares, except for acquisition-related financing
3. Ensure Amit Dahanukar continues as a director on the company's board and retains control
4. Not transfer or restructure ownership of shares without prior consent from the lenders

Financial Context

To provide context for this corporate action, let's look at some key financial metrics from Tilaknagar Industries Limited's latest balance sheet (as of March 2025):

The company has shown significant growth in its total assets and equity over the past year, which may have influenced the decision to secure this financing arrangement. The substantial increase in investments (+86.32% YoY) suggests that the company might be pursuing growth opportunities, potentially necessitating additional funding.

This corporate action highlights the promoter's commitment to the company's growth plans while also indicating the lenders' confidence in Tilaknagar Industries Limited's financial stability and future prospects. Investors and stakeholders should monitor how this financing arrangement impacts the company's future strategic decisions and financial performance.

Note: All financial figures are based on the standalone balance sheet data as of March 2025.

Tilaknagar Industries Ltd. (TI), a leading Indian spirits company, has announced the allotment of 34 lakh equity shares to warrant holders associated with Madhusudan Kela's Singularity Equity Fund. This move marks a significant development in the company's capital structure and represents a vote of confidence from prominent investors.

Key Details of the Allotment

The allotment is part of a larger conversion of warrants into equity shares, as approved by the Finance Committee of the Board of Directors. Here are the key details:

• Total Allotment: 3,77,15,000 equity shares
• Face Value: Rs. 10 per share
• Exercise Price: Rs. 382 per warrant
• Capital Raised: Approximately Rs. 1,080.53 Crores

Impact on Shareholding Structure

The conversion of warrants has led to an increase in the company's paid-up equity share capital:

Singularity Equity Fund's Participation

The allotment to Singularity Equity Fund, associated with Madhusudan Kela, is part of a broader group of investors participating in this equity expansion. Specifically:

• Singularity Equity Fund I: 12,00,000 shares
• Singularity Growth Opportunities Fund II: 12,00,000 shares
• Singularity Large Value Fund I: 10,00,000 shares

Strategic Implications

This equity allotment comes at a time when Tilaknagar Industries is making significant strides in the Indian spirits market. The company recently announced its entry into the premium whisky category with the launch of Seven Islands Pure Malt Whisky, marking a strategic expansion beyond its traditional stronghold in the brandy segment.

The capital infusion from this warrant conversion is likely to support TI's growth initiatives, including:

1. Expansion into the premium whisky market
2. Strengthening its position in the brandy segment
3. Potential acquisitions and new product developments

Company's Recent Developments

Coinciding with this equity allotment, Tilaknagar Industries has made a notable entry into the premium whisky category. The company launched Seven Islands Pure Malt Whisky, a blend of Indian and Scottish malts, positioning itself in the rapidly growing premium whisky market in India.

Market Outlook

The Indian whisky market, which accounts for about 66% of total spirits consumption in India, presents a significant opportunity for Tilaknagar Industries. With the whisky segment growing at 7% year-on-year, TI's strategic moves, supported by this capital infusion, could position the company for strong growth in this category.

The allotment of equity shares to Singularity Equity Fund and other investors not only strengthens Tilaknagar Industries' capital base but also reflects investor confidence in the company's growth strategy and market potential in the evolving Indian spirits industry.