Tilaknagar Industries Ltd, a leading player in India’s spirits industry, has announced a major capital raise through a preferential allotment of equity shares and convertible warrants, approved by its Finance Committee on September 29, 2025, following shareholder approval at an EGM held on August 20, 2025.
Equity Share Allocation
The company allotted 1,43,80,000 equity shares at ₹382 per share, raising ₹549.32 crore. The shares were primarily issued to non-promoter investors, with SMALLCAP World Fund, Inc. being the largest recipient, acquiring 65,50,000 shares.
Convertible Warrant Issuance
In addition, Tilaknagar Industries issued 4,57,15,000 convertible warrants at the same price of ₹382 per warrant, which could generate an additional ₹1,746.31 crore upon full conversion. The warrants were allotted to both promoter and non-promoter categories, with notable allocations to:
- Axana Estates LLP – 98,15,000 warrants
- Amit Arun Dahanukar (Promoter) – 80,00,000 warrants
- TIMF Holdings – 60,00,000 warrants
- SMALLCAP World Fund, Inc. – 65,50,000 equity shares
- Cohesion MK Best Ideas Sub-Trust – 25,25,000 equity shares
- Bandhan Focused Fund – 13,25,000 equity shares
Impact on Share Capital
Following this allotment, the company’s paid-up equity share capital increased from 19,38,13,750 shares (₹193.81 crore) to 20,81,93,750 shares (₹208.19 crore).
The newly allotted equity shares and warrants are subject to SEBI-mandated lock-in periods. For the warrants, 25% of the issue price was paid upfront, with the remaining 75% payable upon conversion.
Strategic Rationale and Outlook
Tilaknagar Industries intends to strengthen its financial position, potentially using the funds for growth initiatives and debt reduction. The company has also confirmed it will apply for listing and trading approvals for the new shares on stock exchanges within the prescribed timelines.
This capital infusion positions Tilaknagar Industries to expand operations, enhance financial flexibility, and pursue strategic opportunities in the competitive Indian spirits market.
Summary
Tilaknagar Industries has raised ₹549.32 crore through the preferential allotment of 1.44 crore equity shares and issued 4.57 crore convertible warrants at ₹382 each, potentially adding another ₹1,746.31 crore upon full conversion. Key investors include SMALLCAP World Fund, Axana Estates LLP, and promoter Amit Arun Dahanukar. The company’s paid-up capital increased from ₹193.81 crore to ₹208.19 crore, with all shares and warrants subject to SEBI-mandated lock-in periods. The capital raise is expected to strengthen Tilaknagar Industries’ financial position, supporting growth initiatives and debt reduction.
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