Ajooni Biotech to raise Rs 45 Cr via 5 Cr convertible warrants

Pure vegetarian animal healthcare solutions company Ajooni Biotech will raise Rs 45 crore through the issuance of 5 crore convertible warrants at Rs 9 each to promoters and non-promoters, including funds and corporates.

Ajooni Biotech has made two strategic decisions aimed at enhancing its financial structure and supporting future growth initiatives, a company statement said.

The board of directors has approved an increase in the company’s authorised share capital from Rs 40 crore to Rs 50 crore with the new shares ranking pari passu with the existing equity shares, according to the statement.

The company will issue up to 5,00,00,000 convertible warrants at an issue price of Rs 9 each, aggregating Rs 45 crore.

These warrants will be allocated to both promoters such as Jasjot Singh and Healthy Biosciences Ltd, and non-promoters, including Al Maha Investment Fund PCC, Minerva Ventures Fund, Veer Energy & Infrastructure Ltd, Gala Finance, and Investment Private Ltd.

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Each warrant is convertible into one equity share, with a conversion ratio of 1:1, at the same price.

These initiatives will strengthen the company’s capital base, providing financial flexibility for future growth, it stated.

Jasjot Singh, MD & CFO, Ajooni Biotech, said in the statement, "We are pleased to announce strategic initiatives, which are aimed at strengthening our financial foundation and supporting our growth ambitions. The increase in authorised share capital and the issuance of convertible warrants reflects our commitment to enhancing shareholder value and ensuring financial flexibility for our future endeavors."

With a comprehensive feed range, Ajooni is a significant player in the animal pure veg feed and pure veg feed supplement space. In FY24, the company reported revenue of Rs 82.30 crore, an EBITDA of Rs 4.43 crore, and a net profit of Rs 2.17 crore.