Outcome of Board Meeting regarding Right Issue of Shares
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The Board of Himalaya Food International Ltd approved a Rights Issue of up to Rs. 40 Crores, consisting of 2,89,36,442 equity shares at Rs. 13.80 per share (face value Rs. 10 plus Rs. 3.80 premium). The ratio is 1 rights share for every 2 shares held, with the record date set for May 23, 2025. The issue opens on June 3, 2025 and closes on June 18, 2025. Post-issue share count would rise to 8,68,09,326 shares from the current 5,78,72,884 shares. The company also shared positive business updates: revival of the Dollar Tree U.S. account, a 5-year MOU with a U.S. food processor cooperative for frozen breakfast products, bulk French fries export orders, and a French fry plant (54,000 MT capacity) expected operational by October 2025. Additionally, ITAT ruled in the company's favor, dismissing Rs. 119.27 Crores of tax claims for assessment years 2013-14 and 2014-15.
Existing shareholders will need to decide whether to subscribe to the rights issue by June 18, 2025 to avoid dilution of their holdings. The rights issue will bring in fresh capital to fund the new French fry plant and export expansion, while the Dollar Tree revival, U.S. MOU, and tax relief are positive signals for future revenue and cash flows.