NHC Foods board approves fund raise of Rs 53.76 cr via convertible warrants

NHC Foods announced that its Board has approved a preferential issue of up to 25.60 crore convertible warrants at an issue price of Rs. 2.10 per warrant, aggregating to Rs.53.76 crore.

Satyam S Joshi HUF is proposed to receive 14 crore warrants under the issue, making it the largest allocation and reflecting a significant increase in management's stake in the Company. The proposed participation by Satyam S Joshi HUF is the largest allocation under the issue, with 14 crore warrants proposed to be allotted to the entity.

Upon full conversion, these warrants would translate into 14 crore equity shares, representing an 11.67% shareholding in the Company. The proposed warrant allotment comes alongside the recent conversion of 19 FCCBs (Foreign Currency Convertible Bonds) into 18.18 crore equity shares, further strengthening NHC Foods' capital base.

The warrants will carry a 1:1 conversion ratio, with each warrant convertible into one equity share of the Company within 18 months from the date of allotment. Investors will be required to pay 25% of the issue price upfront, with the remaining 75% payable at the time of conversion.