Nihar Info Global Reports Strong Revenue Growth, Proposes Rights Issue for Expansion

Nihar Info Global Limited , a diversified company with interests in e-commerce, healthcare, and media, has reported significant revenue growth, despite posting net losses. The company has also announced ambitious expansion plans, including a proposed rights issue to fund its growth strategies.

Financial Performance

Nihar Info Global achieved a standalone revenue of ₹483.03 crore, marking a 51.82% increase from ₹318.14 crore in the previous year. The consolidated revenue saw an even more impressive growth of 140.41%, reaching ₹772.00 crore compared to ₹321.00 crore in the previous fiscal year.

However, the company reported net losses of ₹364.32 crore on a standalone basis and ₹357.00 crore on a consolidated basis. These losses were primarily attributed to legacy asset write-offs, including the Nihar e-centre and non-recoverable advances of ₹82.35 lakh to M/s. Siri Cybertech.

Subsidiary Performance

The company's subsidiaries played a crucial role in driving consolidated growth:

• Life 108 Healthcare Pvt. Ltd. posted a remarkable 300% growth, with a turnover of ₹3.47 crore, up from ₹1.00 crore in the previous year.
• BeastBells Media Pvt. Ltd. more than doubled its turnover, growing by 200% to ₹1,127.00 lakh from ₹522.00 lakh in the previous fiscal year.

Strategic Initiatives and Expansion Plans

To support its growth plans, Nihar Info Global's board has proposed:

1. Increasing the authorized share capital from ₹14.00 crore to ₹323.00 crore.
2. A rights issue of equity shares amounting to over ₹210.00 crore, in a 1:1 ratio, to be paid in four tranches.

The funds raised from the rights issue are earmarked for:

• Expanding e-commerce fulfillment centers in Tamil Nadu and Maharashtra (₹4.40 crore)
• Investing in Life 108 Healthcare for launching an e-pharmacy portal and private-label products (₹3.00 crore)
• Setting up podcast infrastructure for BeastBells Media (₹3.00 crore)

Future Outlook

The company aims to strengthen its position in various sectors:

• E-commerce: Positioning ONVO as a recognized national lifestyle brand
• Healthcare: Entering the e-Pharmacy space and developing its own product line through Life 108
• Media: Expanding into digital-first entertainment formats and strategic collaborations via BeastBells

Dividend

To strengthen the company's financial position and augment working capital, the board of directors did not declare a dividend for the financial year.

Nihar Info Global Limited appears to be entering a new phase of growth, focusing on consolidating its operations, expanding its market presence, and diversifying its revenue streams across e-commerce, healthcare, and media sectors.