Tilaknagar to raise Rs 2,296 crore via preferential issue for Imperial Blue buy

Tilaknagar Industries said its board has approved a preferential issue of securities (equity shares and warrants) worth Rs 2,296 crore to fund its recent acquisition of Imperial Blue whiskey from Pernod Ricard.

The issue price will be Rs382 per security and 44 investors are participating in this issue, including promoters and existing investors. On Tuesday, Tilaknagar’s share rose 0.27% to close Rs 510.45 a piece.

“Of these, nine investors are subscribing through equity shares, contributing approximately Rs549 crore. The remaining 35 investors are participating through warrants, raising around Rs1,747 crore,” it said in its filing.

As per the terms, Rs437 crore or a quarter of the warrants issue size will be payable at the time of allotment of warrants, while the balance Rs1,310 crore will be received upon conversion into equity shares.

While the promoter group is participating in the issue led by Amit Dahanukar, who will subscribe warrants worth Rs306 crore, other investors include Axana Estates LLP, SMALLCAP World Fund Inc, TIMF Holdings, Funds managed by Abakkus Asset Manager Private Limited, Bandhan Mutual Fund, Arpit Khandelwal, among high-net-worth individuals.

Last week, Tilaknagar signed an agreement to acquire Imperial Blue for about Rs4150 crore in an all-cash deal, entering the whiskey segment which accounts for about two-thirds of India’s spirits market.

Tilaknagar, which sells Mansion House brandy, had said it will raise upto Rs6500 crore, including upto Rs2,500 crores in equity or equity linked securities and the remaining in debt securities in one or more tranches.

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