NACL Industries Ltd will be raising funds to the tune of ₹115 crore through the issue of equity and equity warrants.
The board of directors have approved a proposal to this effect. The funds will be used to finance its growth plans in the domestic and export markets. The company will seek shareholders’ approval for the proposal in March.
The infusion of equity will be through issue of equity and equity Warrants (exercisable within 12 months), to an incoming investor and the existing promoter. The incoming investor,Krishi Rasayan Group, will hold around 16% of the equity of NACL upon completion of infusion . The promoters will also invest ₹15 Crore. through Equity Warrants.
Post the issue, the promoters will continue to have controlling interest by holding around 63% of the equity.
For the third quarter ended December 31, 2018, the company’s net profit remained flat at ₹1.42 crore compared to the year ago period. The total revenue grew by 7% at ₹201 crore compared to ₹188 crore in the same quarter last year.
``Reduction in the margins is mainly on account of lower volumes of domestic sales coupled with higher input costs and inadequate availability of raw-materials,’’ the company said in a release.