Mumbai (Maharashtra) [India], December 6 (ANI/PNN): Ajooni Biotech Ltd (NSE - AJOONI) - One of the leading companies in the animal healthcare solutions and animal feed supplements is schedule 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 company's expansion plans, entering new geographies and for general corporate purposes. Right issue of the company are offered at a price of Rs. 6 per share - 30 per cent 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 the 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). The 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 launch, expanding footprints. We have a dedicated focus is 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 company's balance sheet and help fund its expansion plans and strategic growth initiatives." 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. Established in the year 2010, Ajooni Biotech Ltd has emerged as one of the leading animal healthcare solutions companies dedicated to improving the productivity of Dairy farmers and sustainably increase livestock yields. Company offers a wide range of products including Quality Cattle feed, Cattle feed Chips, Camel Feed, Cotton Oil Cake, Mustard Oil Cake and wide range of Feed supplements to cover the entire life cycle of an animal. Company has two state-of-the-art manufacturing facilities with a cumulative Animal feed production capacity of 60,000 MTPA and liquid supplements capacity of 30 lakh Litres per annum. Company is currently working with more than 10,000 farmer families in seven states of Northern India and plans to grow nationally. Ajooni is also ISO and GMP-certified company, manufacturing ISI mark Cattle Feed. In November 2022, Ajooni Biotech Ltd became the first Indian Animal Feed manufacturing company to get ZED certification (Zero Effect Zero Defect) from the Ministry of Micro, Small & Medium Enterprises, Govt of India. The Company is Registered with the Department of Dairy Development, Govt of Punjab (India) and India's first GMP certified Cattle feed company with ISO 9001:2015. The company is registered with the Bureau of Indian Standards (BIS) and manufacturing ISI Mark Animal feed. The Company is among main suppliers to leading companies like IFFCO Kisan, Mother Dairy, Paras Dairy & Saahaj Dairy. The Indian animal feed market reached a value of Rs. 873.7 billion in 2021. Looking forward, the market is projected to reach Rs. 1493.8 billion by 2027, exhibiting at a CAGR of 9.6 per cent during 2022- 2027. (Source - www.researchandmarkets.com, International Feed Industry Federation, Food & Agriculture Organization (FAO) of the United Nations). As per data from 20th Livestock Census 2019, Ministry of Fisheries, Animal Husbandry & Dairying, India has the world's largest number of livestock animals with 536 million along with a large population of cattle and buffaloes which is estimated at more than 125 million milch cows and buffaloes. For FY 22, Company reported sales of Rs. 74 crore - a growth of 46 per cent as against sales of Rs 50.8 crore in FY21, EBITDA grew 88 per cent to Rs 3.08 crore in FY22, Net Profit registered 183 per cent rise during FY22 to Rs 1.05 crore. Company has achieved strong CAGR of 23 per cent in Sales and 37 per cent in Net Profit and 65 per cent in EBITDA during the last 3 years with an improving return ratio. Promoter Group holding in the company is 67.35 per cent as on 30 Sep 2022. Company came up with its IPO on the NSE Emerge platform in December 2017 & migrated to the main board of NSE in May 2022. On 7 October 2022, there has been a stock split from Rs. 10 per equity share to Rs 2 per equity share. Robust Financial Performance over the last 5 years Company has reported robust financial performance over the last 5 years. Sales has grew at a CAGR of 21 per cent to Rs 74 crore in FY22 from Rs 28.5 crore in FY17. EBITDA and Net Profit too have maintain strong 30 per cent plus CAGR during 5 years from FY17 to FY22. This story is provided by PNN. ANI will not be responsible in any way for the content of this article. (ANI/PNN)