Mumbai, 25th July 2023The promoters of Tilaknagar Industries Limited (TI) (BSE: 507205) (NSE: TI), a leading Indian-Made Foreign Liquor (IMFL) manufacturer, have announced the de-pledging of 4.18 crore equity shares, representing nearly 22 percent of the total paid-up capital of the company. This has resulted in a steep reduction in the pledged promoter equity to 23.9 percent from the earlier 75.8 percent of the total promoter shareholding in the company.
The promoters and the promoter group of Tilaknagar Industries currently hold over 8.04 crore equity shares, representing 42 percent of the total paid-up capital. Prior to the pledge revocation, 6.10 crore equity shares constituting 75.8 percent of the promoter shareholding and 31.9 percent of the total paid-up capital of the company were pledged.
After the release of 4.18 crore equity shares from the pledge, the total number of pledged shares has reduced to 1.92 crore. This represents 10 percent of the total paid-up capital and 23.9 percent of the total promoter shareholding.
The promoters of the company had subscribed to convertible warrants worth Rs 63 crore at Rs 53 per warrant in December 2021, which have all been converted into equity shares as on June 30, 2023.
Since March 2019, Tilaknagar Industries has reduced its debt by almost Rs 950 crore. In FY23, the company’s debt decreased by Rs 199 crore to Rs 250 crore from Rs 449 crore as of March 2022. As on March 2023, the company’s gross debt and net debt stand reduced to Rs 250 crore and Rs 182 crore, respectively. As a result, Tilaknagar Industries’ finance costs also reduced significantly to Rs 40 crore in FY23, compared to Rs 62 crore in FY22 and Rs 184 crore in FY19. The company plans to become near net-debt free over the next 12-18 months.
Maker of the famous Mansion House brandy, Tilaknagar Industries has also registered strong business growth in FY23 recording a 43 per cent growth in volumes over FY22. The company’s volume growth in FY23 was led by its flagship brand Mansion House and Courrier Napoleon which grew 40 percent and 50 percent, respectively, year-on-year. In FY23, Courrier Napoleon also became the company’s second millionaire brand, after Mansion House.
Despite inflationary pressures faced by the alco-bev industry, the company’s earnings before interest, taxes, depreciation and amortization increased by 22 percent to Rs 137 crore in FY23 as against Rs 112 crore in FY22.