GRM Overseas To Issue Up To 91,00,000 Warrants At Rs. 150 To Raise Rs 136.5 Cr

One of the top exporters of basmati rice in India, GRM Overseas, said on Friday that it would offer share warrants on a preferential basis to raise Rs 136.5 crore. Up to 91,00,000 share warrants at an issue price of Rs 150, plus a premium of Rs 148 per warrant, have been authorised by the company's Board of Directors. According to a regulatory filing, the board has authorised the capital raise of Rs 136.5 crore by the issuance of share warrants to 33 promoters and non-promoter investors on a preferential basis.

The top investors or proposed allottees are Atul Garg, Mamta Garg and Hukam Chand Garg from the promoter category and Forbes EMF, Coeus Global opportunities fund, Singularity Equity Fund I and Brescon Realty Private Ltd from the non-promoter category.

"The Company has fixed July 06, 2024 as the "Cut-off-Date" for the purpose of determining the eligibility of the Members entitled to vote by remote e-voting. Those Members holding shares, as on the close of business hours on July 06, 2024 will be entitled to avail the facility of remote evoting as well as voting at the EGM," said the Board of Directors in a regulatory filing.

Atul Garg, Chairman & MD, GRM Overseas said, "The fund-raise will boost the market competitiveness and product range of the company. This is a crucial fund-raise which will drive our initiatives to explore future inorganic growth opportunities and enhance operational capabilities. Our company is now poised to strengthen its position in the food FMCG space. The confidence reposed by marquee investors will take GRM into next league of growth opportunities. The 10X brand has been at the forefront of bringing innovative products in the Food FMCG space in India. We will continue to invest in our brand, distribution, operational capabilities and look out inorganic opportunities in Newage D2C brands."

"The fund raised will also be used for expanding "10X" Brand in India, making it a comprehensive food FMCG product company. The funds will also be allocated to explore future inorganic growth opportunities, including strategic mergers and acquisitions, and improve operational capabilities. These activities may be undertaken directly by the Company or through its subsidiaries or joint ventures," said the company in a statement.

GRM has three rice processing facilities in Panipat, Haryana, Naultha, Haryana, and Gandhidham, Gujarat, with a total yearly production capacity of 4,40,800 MT. In addition, the company has a 1.75 lakh square foot warehouse facility next to the Gandhidham factory, which enables quick shipping from the ports of Kandla and Mundra. In addition to selling products under its own brands, 10X, Himalaya River, and Tanoush, GRM also engages in private-label sales. As a result of expanding its rice market into 42 nations, GRM has emerged as India's third-largest rice exporter since 1974.

Following the above news, the shares of GRM Overseas ended 2.89% higher on the BSE at Rs 188.50 apiece with a market cap of Rs 1,131.00 Cr.