Ajooni Biotech Ltd., one of the leading companies in the animal healthcare solutions and animal feed supplements, is scheduled to open its Rs. 29.01 crore rights issue on December 7, 2022.

The funds raised through the issue will be utilised to meet the working capital requirements to fund the company's expansion plans, entering new geographies and for general corporate purposes. Right issues of the company are offered at a price of Rs. 6 per share, at 30% discount to closing share price on December 6, 2022. Rights Issue closes on December 15, 2022.

The company will issue 4,83,60,313 fully paid-up equity shares of face value of Rs. 2 each for cash at a price of Rs. 6 per equity share (including a premium of Rs. 4 per equity share) aggregating to Rs. 29.01 crore. The rights entitlement ratio for the proposed issue is fixed at 29:30 (29 equity shares of face value of Rs. 2 each for every 30 equity shares of Rs. 2 each held by the equity shareholders on the record date – November 25). Last date for On-market Renunciation of rights entitlements is December 9, 2022.

Commenting on the development, Jasjot Singh, Chairman and Managing Director, Ajooni Biotech Ltd. said, "Company has taken important strategic initiatives in the recent past with a focus to expand production capacities, launching new products, adding more channel partners and working with more farmers. Our long-term focus continues to be investing in growth through new product launches, expanding footprints. We have a dedicated focus to leverage capabilities, to develop cost effective solutions to improve animal productivity and accomplish its vision of ‘To be a world class Animal Health Care Company’. Proceeds of the issue will further strengthen the company's balance sheet and help fund its expansion plans and strategic growth initiatives."

The company’s board of directors on October 17, 2022 approved the issuance of equity shares by way of a rights issue to eligible equity shareholders for an amount not exceeding Rs. 30 crore. Post the rights issue, total outstanding shares of the company should increase to 9,83,88,223 equity shares from 5,00,27,910 equity shares prior to the rights issue.