Som Distilleries springs ~5% as board approves preferential issue of Rs28.80 crore

Som Distilleries & Breweries Limited informed that at the meeting of the company’s board of directors held on July 20, 2023, the board of directors reviewed and approved the raising of funds by issuing up to 40,00,000 warrants of convertible shares to promoters, group of promoters and other public entities Investors on a preferential basis in one or more tranches, at the price of Rs72 (including the premium of Rs67) for each mandate.

These warrants will be convertible into shares of Rs5 each of the Company. The issuance is further subject to necessary shareholder/regulatory approvals, as applicable.

The total amount of these issues stands at Rs28.80 crore.

The Warrants may be exercised in one or more tranches by the holder of Warrants at any time at the latest on the expiry of a period of 18 months from the date of allocation by sending a written notice to the Company specifying the number of Warrants that it is proposed to exercise as well as the total amount to be paid thereon.

On the date of allocation of the Warrants, an amount equal to 25% of the issue price of the Warrants will be paid, specifies the company in its file.

At around 10:19 am, Som Distilleries & Breweries was trading at Rs77.80 up Rs3.7 or 4.99% from its previous close of Rs74.10 on BSE. The certificate opened at Rs77.80 and touched the intraday high and low of Rs77.80 and Rs77.80 respectively.