Som distilleries & breweries has issued a comprehensive press release addressing regulatory action taken by the Excise Department of Madhya Pradesh, clarifying that the action stems from a 2012 case in which the company was not involved. The company has confirmed the suspension of its manufacturing license while emphasizing no impact on financial stability.

Background of Regulatory Action

The company has clarified that arbitrary action was taken by the Excise Commissioner of Madhya Pradesh based on a case from 2012 in which Som Distilleries & Breweries was not a party. The case relates to certain individuals who were not even employees of the company at the time of judgment.

Manufacturing License Suspension Details

The Excise Department has suspended the manufacturing unit license in connection with the historical case. The company has provided specific details about the affected facility and regulatory authority involved.

Legal Recourse and Current Status

Som Distilleries is pursuing appropriate legal recourse before the Hon'ble High Court of Madhya Pradesh at Jabalpur, where the matter is currently listed. The original judgment and sentences have been stayed by the High Court of Madhya Pradesh at Indore.

Management Assurances to Stakeholders

The management has provided categorical assurances regarding the company's operational and financial stability. The company emphasizes that this pertains to legacy issues and does not reflect current governance standards.

The company has stated that operations, management oversight, and compliance systems have been significantly strengthened over the years with enhanced internal controls and regulatory monitoring. Management remains confident about resolving the matter in accordance with law and maintaining long-term business prospects.

Som Distilleries & Breweries , a prominent player in the Indian alcoholic beverage industry, has announced that its board has approved a rights issue worth ₹49.99 crores. This strategic move aims to acquire 49,990,000 shares of Woodpecker Greenagri Nutrients Pvt Ltd, following audit committee recommendations.

Rights Issue Details

The approved rights issue represents a significant development for Som Distilleries:

• Issue Size: ₹49.99 crores
• Purpose: Acquisition of Woodpecker Greenagri Nutrients Pvt Ltd shares
• Number of Shares: 49,990,000

This capital raising initiative directly affects Som Distilleries shareholders and signifies the company's strategic expansion into the agricultural nutrients sector through this acquisition.

Financial Context

To understand the significance of this rights issue, it's crucial to examine Som Distilleries' recent financial performance:

The company has demonstrated robust growth, with revenue increasing by 12.52% and net profit surging by 20.81% year-over-year.

Balance Sheet Strength

Som Distilleries' balance sheet also reflects a strong financial position:

The company's total assets have grown by 13.51%, while total equity has increased by a substantial 28.83%, indicating a strengthening financial foundation.

Implications of the Rights Issue and Acquisition

The approved rights issue of ₹49.99 crores for the acquisition of Woodpecker Greenagri Nutrients Pvt Ltd shares could have several implications for Som Distilleries & Breweries:

1. Strategic Expansion: The acquisition represents a significant move into the agricultural nutrients sector, diversifying the company's business portfolio.

2. Shareholder Value: Existing shareholders may benefit from the opportunity to participate in the rights issue and potentially increase their stake in the company.

3. Synergies: The acquisition may create synergies between Som Distilleries' existing operations and Woodpecker Greenagri's business, potentially leading to new growth opportunities.

4. Market Position: Entering the agricultural nutrients sector could strengthen Som Distilleries' overall market position and provide new revenue streams.

As Som Distilleries & Breweries moves forward with this rights issue and acquisition, shareholders and market observers will be keenly watching for further details on the implementation and integration plans.

Investors are advised to await official announcements from the company regarding the specifics of the rights issue, including the price, ratio, and record date, before making any investment decisions.