Ajooni Biotech offers rights issue to raise Rs 44 crore

New Delhi: Animal healthcare solutions firm Ajooni Biotech on Tuesday opened its rights issue with an aim to raise Rs 43.81 crore from existing shareholders.

Ajooni Biotech will offer 8,76,13,721 fully paid-up equity shares of the face value of Rs 2 each at a price of Rs 5 per equity share aggregating to Rs 43.81 crore, the company said in a statement.

The issue will close on May 31.

Funds raised through the issue will be utilised to finance expenditure towards acquisition of land, site development and civil work, to acquire plant and machinery, part finance working capital requirement and corporate purposes, the company said.

The rights entitlement ratio for the proposed issue is fixed at 1:1 (1 equity shares of face value of Rs 2 each for every 1 equity share held) and the record date is May 7.

The last date for on-market renunciation of rights entitlements is May 23, 2024.

The company's rights issue is offered at Rs 5 per share -- a 20 per cent discount to the closing share price of Rs 6.5 on May 18.

The company's promoter group is also participating in the rights issue.

Rating agency CRISIL has raised the company's long-term credit facilities ratings to "CRISIL BB+/ Stable".

For the financial year ended March 2024, the company posted a net profit growth of 92.86 per cent at Rs 2.16 crore as against Rs 1.12 crore during the preceding fiscal ending March 2023.

Turnover also increased 7.54 per cent to Rs 80.11 crore in FY24 as against Rs 74.49 crore a year ago.