Tess Agro goes for Rs. 59 m Rights

Tess Agro PLC has announced a Rights Issue to raise Rs. 59 million to part settle the bank borrowings and finance working capital.

The Company’s Board has resolved to issue 70 million voting shares at Re. 80 cents each and 10 million non-voting shares at Re. 30 cents each on the basis of one new share for 4 held.  The stock closed unchanged at Rs. 1.10 whilst the net asset value is Re. 65 cents.

The current state capital of the Company is Rs. 357 million. The Rights is subject to regulatory and shareholder approval.

The Company as of September 2017 had Rs. 144 million worth of short term loans and borrowings whilst the value of long-term borrowings was Rs. 125 million. Reserves were a negative Rs. 248 million, up from Rs. 111 million a year ago. 

Turnover in the first six months of FY18 was Rs. 166 million down by 9% whilst pre-tax loss was Rs. 20.4 million as against a loss of Rs. 74.7 million a year earlier.