Agribio Spirits Limited has announced an investment in its wholly owned subsidiary, Solkit Distillery and Brewery Private Limited, through a rights issue subscription worth ₹2.01 crores. The transaction was completed on December 29, with the equity shares being duly allotted to the company on the same date.

Investment Details

The investment involved the subscription and acquisition of 98,000 equity shares of Solkit Distillery and Brewery Private Limited. The shares carry a face value of ₹10 each and were issued at a premium of ₹195 per share, making the total price ₹205 per share.

Subsidiary Company Profile

Solkit Distillery and Brewery Private Limited operates in the bottling and manufacturing of alcoholic beverages industry. The company is incorporated under the Companies Act, 1956, with its registered office located at B-188(A), Mewar Industrial Area Road No. 5, Udaipur, Rajasthan. The subsidiary runs bottling operations for Country Liquor, Rajasthan Made Liquor, and India Made Foreign Liquor with an approximate capacity of 1,45,000 units on a franchise basis.

Financial Performance

The subsidiary's turnover performance over the past three years shows fluctuating trends:

Capital Structure Changes

The rights issue subscription has resulted in changes to Solkit Distillery's capital structure:

Regulatory Compliance

The investment falls within related party transactions as Agribio Spirits Limited holds complete ownership of Solkit Distillery. The company has confirmed that the transaction was conducted at arm's length, with the parent company's interest limited to the extent of its shareholding. The investment is designated for general corporate purposes of the subsidiary and does not require any governmental or regulatory approvals.

This investment reinforces Agribio Spirits Limited's commitment to strengthening its subsidiary operations in the alcoholic beverages manufacturing sector while maintaining compliance with SEBI listing regulations.

Agribio Spirits Limited has extended a corporate guarantee of ₹70.00 crores to secure cash credit facilities for its associate company, Agribiotech Industries Limited. The guarantee has been provided in favor of a consortium of member banks led by Punjab National Bank.

Corporate Guarantee Details

The company has disclosed the extension of the corporate guarantee under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The guarantee serves as security for cash credit facilities availed by Agribiotech Industries Limited.

Promoter Interest and Transaction Structure

The promoters have disclosed their interest in this transaction through their shareholding and directorship in Agribiotech Industries Limited. The company has confirmed that the transaction is conducted on an arm's length basis, ensuring fair commercial terms.

Impact Assessment

Agribio Spirits Limited has assessed that there is no immediate impact on the company from providing this corporate guarantee. However, the company acknowledges potential exposure to the extent of the guarantee amount of ₹70.00 crores in the event that Agribiotech Industries Limited becomes unable to meet its repayment obligations to the lender consortium.

Regulatory Compliance

The disclosure has been made in compliance with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. This ensures transparency regarding the company's contingent liabilities and related party transactions with its associate company.