DS Group leads Bira parent's $10M rights issue

DS Group (Dharampal Satyapal Group), an existing investor in Bira beer maker B9 Beverages, is leading the company's $10 million rights issue, a company spokesperson told YourStory.

Along with DS Group, about 325 investors, including a reputed family office, have also committed to the rights issue, the company spokesperson added.

Ankur Jain-led B9 Beverages plans to use the funding for working capital requirements and corporate governance.

A rights issue is typically employed by financially strained companies, allowing them to issue new shares at a discounted rate for a specified period. It is usually taken as a means to repay the debt; the offering allows existing shareholders to invest further, based on their existing stakes.

According to a report by Mint last month, the right issue was undertaken at a substantial discount of 55% at Rs 325 a piece from its previous round, which was undertaken at Rs 700 per share.

The development comes as the Bira 91 beer maker navigates supply crunches, reports of layoffs, and delayed vendor payments, as well as mounting losses.

In May, Economic Times reported that the company has delayed interest payouts to some of its debt investors through KredX. The company had earlier also raised venture debt from Alteria Capital, Trifecta Capital, and Anicut Capital to address its liquidity issues.

According to regulatory filings, the alco-bev company's revenue fell by 22% to Rs 638.5 crore in FY24 from Rs 824 crore in the previous year. During the same period, its losses widened about 70% to Rs 748 crore.

At the beginning of the year, the company undertook a broader reshuffle of its executive team. It brought back former CFO, Vikram Qanungo, as its finance chief, as well as appointed Manoj Mishra as VP- Manufacturing & Sustainability. In his previous stints, Mihra was Head of Operations at Ball Corporation.

It also promoted company veteran Nayanabhiram Deekonda as SVP- Sales, handling India sales. During the same period, Deepak Sinha, ex-VP of International Business, was appointed as SVP – Brand & Innovation.

Founded in 2015, the company currently counts Japan-headquartered Kirin Holding, Sixth Sense Ventures, Sequoia Capital India and Belgium-based Sofina among its key investors.