NHC Foods Limited's Board of Directors held a comprehensive meeting on February 9, 2026, addressing multiple strategic and financial matters for the quarter ended December 31, 2025. The board session, which commenced at 10:45 am and concluded at 12:15 pm, resulted in several key approvals that will shape the company's financial trajectory.

Warrant Proceeds Compliance Confirmation

The company formally confirmed to BSE Limited that there is no deviation or variation in the use of proceeds from warrants allotted on preferential basis, adhering to Regulation 32 of SEBI Listing Regulations. The statement, signed by Managing Director Satyam Joshi, confirmed full compliance with the objects stated in the Letter of Offer for the quarter ended December 31, 2025.

Complete Warrant Fund Utilization

The detailed utilization statement reveals that all Rs. 8,12,50,000 raised through warrant conversions has been fully utilized across the stated objectives. The funds were deployed exactly as originally disclosed, with no modifications to the allocation or purposes.

Rights Issue Compliance Status

Separately, the company also confirmed no deviation in the use of proceeds from its Rights Issue. The Rs. 47.42 crores raised through the Rights Issue has been fully utilized across working capital requirements (Rs. 25.00 crores), secured loan repayment (Rs. 15.00 crores), general corporate purposes (Rs. 7.00 crores), and issue-related expenses (Rs. 0.42 crores).

Financial Results and Major Fundraising Initiative

The board approved the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. These results, prepared in accordance with Indian Accounting Standards (Ind AS), underwent limited review by statutory auditors and received Audit Committee recommendations.

Simultaneously, the board authorized a substantial fundraising plan of up to USD 27 Million through various permitted instruments including equity shares, convertible bonds, debentures, warrants, preference shares, and foreign currency convertible bonds.

Enhanced Borrowing Capacity and Corporate Actions

NHC Foods has issued warrants convertible into 6.50 crores equity shares at Rs. 1.25 per share. The warrant conversions occurred on multiple dates including 05-09-2025, 27-10-2025, and 24-12-2025, raising Rs. 8,12,50,000. These conversions resulted in the Managing Director's stake increasing from 3.82% to 13.83% as of December 31, 2025.

The board also approved increasing the company's borrowing limit to Rs. 500 crore under Section 180(1)(a) of the Companies Act, 2013, and approved a draft postal ballot notice for obtaining shareholder approval on specific agenda items.

NHC Foods has announced a significant expansion into the beverage industry with the establishment of a new manufacturing facility requiring an investment of approximately Rs 12 crore. This strategic initiative marks the company's entry into manufacturing packaged drinking water and carbonated soft drinks.

Manufacturing Capacity and Investment Details

The new facility will feature substantial production capabilities across two key product categories. The company has outlined specific capacity targets and investment parameters for this expansion.

Strategic Business Expansion

This development represents NHC Foods' adoption of new business lines within the beverage industry. The company is positioning itself within the Fast-Moving Consumer Goods (FMCG) and Food & Beverage (F&B) sector, which represents a significant market opportunity.

The installed capacity will be utilized progressively based on market demand, allowing the company to scale operations according to business requirements. This phased approach provides flexibility in managing production levels while optimizing resource utilization.

Business Rationale and Growth Strategy

The establishment of the new manufacturing facility serves multiple strategic objectives for NHC Foods. The expansion is designed to strengthen the company's manufacturing capabilities while addressing evolving market demand in the beverage sector.

Key Strategic Benefits:

• Enhanced manufacturing capabilities
• Market demand responsiveness
• Future growth support
• Product portfolio diversification

The company's decision to enter the beverage industry through this substantial investment demonstrates confidence in market opportunities within the packaged drinking water and carbonated soft drinks segments. The Rs 12 crore investment will be funded through a combination of internal accruals and borrowings, indicating a balanced approach to financing this expansion.