Integrated Industries Revises Preferential Issue Price, Raising Total Fundraise to Rs 114.69 Crore

Integrated Industries Limited (BSE: 531889) has announced a significant fundraise through a proposed preferential issuance of 4,06,00,000 convertible warrants to both promoter and non-promoter investors. This initiative has secured strong support from notable investors, including Choice Strategic Advisors LLP and Accufolio Risers LLP, who have each committed to subscribing to 1,00,0,000 warrants. Initially, the company disclosed the total potential fund infusion upon full conversion to be approximately Rs 101.50 crores. The successful fundraising is strategically aimed at enhancing the operational and financial capabilities of Integrated Industries' subsidiaries. Specifically, the proceeds are earmarked for funding capital expenditure (CAPEX) towards subsidiary-level capacity expansion and strengthening working capital requirements to bolster operational efficiency and facilitate capacity expansion.

The company subsequently issued a clarification letter regarding a clerical/typographical error in the previously disclosed outcome of its Board Meeting. This error impacted the financial terms of the upcoming preferential issue. Integrated Industries confirmed that the error was unintentional and purely clerical, with no changes to any other disclosed terms, conditions, structure, or approvals. The correct and revised details are: the approved Issue Price per warrant is now Rs 28.25 (corrected from Rs 25), and the corresponding Premium amount is Rs 27.25 (corrected from Rs 24). Consequently, the total consideration to be raised from the issuance of 4,06,00,000 warrants has been revised upwards from the previous figure to approximately Rs 114.69 crore.

About the Company

Integrated Industries Limited, a company focused on the food sector, has a diverse portfolio that includes organic, inorganic and processed food items, as well as bakery goods. In 2023, the company strategically acquired a fully operational biscuit manufacturing plant in Neemrana, Rajasthan, through its subsidiary, M/s Nurture Well Food Limited. This acquisition was a key move to boost its production capacity and expand its footprint in the market.

Through the modern facility in Neemrana, Nurture Well Food Limited produces a range of biscuits and cookies under the popular brands RICHLITE, FUNTREAT and CRUNCHY CRAZE. These products have a strong distribution network of more than 150 business partners across North India, with a presence in states like J&K, Himachal, Punjab, Rajasthan, Uttarakhand, Delhi NCR and Uttar Pradesh. The company's reach also extends to several international markets, including the UAE, Somalia, Tanzania, Kuwait, Afghanistan, Congo, Kenya, Rwanda and Seychelles.

The company demonstrated strong financial performance in both Q2FY26 and H1FY26. Quarterly, net sales increased significantly by 43 per cent year-on-year, reaching Rs 286.86 crore in Q2FY26 compared to Rs 186.60 crore in Q2FY25. Profit after Tax (PAT) also grew substantially, rising by 108 per cent to Rs 29.89 crore in Q2FY26 compared to Q2FY25. In its half-yearly results, net sales increased by 64 per cent to Rs 536.72 crore and net profit increased by 100 per cent to Rs 54.66 crore in H1FY26 compared to H1FY25.

In FY25, the company reported net sales of Rs 766 crore and net profit of Rs 67 crore. The promoters of the company own 53.81 per cent, DIIs hold 0.07 per cent and public shareholders own the remaining 46.12 per cent. The shares of the company have a PE of 10x, an ROE of 28 per cent and an ROCE of 31 per cent. The stock gave multibagger returns of 15,545 per cent in 3 years and a whopping 62,500 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.