Franklin Industries Ltd’s Rs. 38.83 crore Rights opened from May 24

The Company will issue 10,84,50,000 fully paid-up Equity Shares of the face value of Rs. 1 each for cash at a price of Rs. 3.58 per Equity Share (including a premium of Rs. 2.58 per Equity Share) aggregating to Rs. 38.83 crore. The Rights entitlement ratio for the proposed issue is fixed at 3:1 (3 Rights equity shares of face value of Rs. 1 each for every 1 fully-paid equity share held by the equity shareholders on the record date – May 13, 2024). The last date for On-market Renunciation of Rights Entitlements is 5 June, 2024                  .

Out of the issue proceeds of Rs. 38.83 crore, company intends to use Rs. 29.26 crore towards working capital requirement and Rs. 9.31 crore towards general corporate purposes.

Incorporated in 1983, Franklin Industries Ltd is engaged in the business of trading of agricultural commodities, such as wheat, rice, maize, vegetables (including capsicum, tomato, etc.), fruits (including mango, watermelon, grapes, etc.), and other agricultural products. The company has recently announced its strategic initiative to diversify its business operation in contract farming business.  Contract farming offers significant potential for expansion and innovation within its business framework. This initiative aligns with the company’s vision to optimize agricultural practices, leverage technological advancements, and establish mutually beneficial partnerships with local farmers and agricultural stakeholders.

The company practices contract manufacturing by leasing agricultural land where they cultivate Cucumbers, Onions, and Castor. The company shares a part of the yield with the farmers who work on a contractual basis on the leased land, thereby supporting the local farmers’ community.

The company also provides contract manufacturing services for agricultural products such as cucumber, onion, and castor. Company source these products from manufacturers by paying an advance payment or according to agreed terms, and then sell them to our network of distributors. Through our presence in the market, we have developed strong relationships with both farmers and the wholesaler/retailer community.

For FY23-24 ended March 2024, the company has reported total income of Rs. 50.95 crore, rise of 148% as compared to the total income of Rs. 20.52 crore. Net Profit of the company for the year ended March 2024 was reported at Rs. 10.46 crore, multi-fold growth from net profit of Rs. 21.43 lakh in the corresponding period last year. Company has completed a stock split from Rs. 10 per share to Rs. 1 per share in January 2024.

Assuming full subscription, Post issue outstanding equity shares will increase to 14.46 crore equity shares from existing 3.61 crore equity shares.         

If you have any objection to this press release content, kindly contact pr.error.rectification@gmail.com to notify us. We will respond and rectify the situation in the next 24 hours.