Tilaknagar Industries Ltd approves further investment in Spaceman Spirits Lab Pvt Ltd

The Finance Committee of the Board of Directors of Tilaknagar Industries Ltd at its Meeting held today i,e on September 09, 2024, has considered and approved a follow-on investment of Rs. 13.15 crores (Rupees Thirteen Crores and Fifteen lakhs only) in Spaceman Spirits Lab Private Limited ("SSL"), makers of premium Indian craft gin Samsara and craft rum Sitara.

Further, the Company has entered into a Share Subscription and Investment Agreement dated September 09, 2024 with SSL and its founders to invest Rs. 13.15 Crores (Rupees Thirteen Crores and Fifteen lakhs only) to be made across 3 tranches over an 18 month period by subscribing to:

(a) 2,546 Equity Shares and

(b) 16,890 Compulsory Convertible Preference Shares ("CCPS").

Earlier, the Company had executed a Share Subscription and Investment Agreement on 27th March 2023, against which the Company had subscribed to 6,636 Equity Shares and 7,374 CCPS of SSL equivalent to 10% of share capital on a fully diluted basis for INR 9.75 crores.

The total shareholding percentage of the Company in SSL after the proposed investment shall stand increased to 20.02% (on a fully diluted basis).

Spaceman Spirits Lab Private Limited ("SSL") whose turnover and net worth for the financial year ended 31st March, 2024 were INR 11.7 crores and INR 12.1 crores respectively.

With this investment, the Company aims to strengthen its presence in the premium craft segment with an Indian provenance which has been witnessing good traction amongst consumers in India and abroad. Pursuant to this Agreement, the Company will also start selling SSL brands in certain states in India and abroad.

Founded by Aditya Aggarwal, Riddhi Aggarwal, Sapna Aggarwal and Jai Prakash Chopra, SSL is engaged in the business of creating and marketing craft alcohol brands and offering advisory services to prospective AlcoBev entrepreneurs. SSL has a presence in the premium gin and rum categories through the brands, Samsara Gin and Sitara Rum respectively.

Samsara Gin is one of India's leading craft gin brands, with their Pink Gin being a crowd favorite.

SSL presently does not own a bottling unit facility. It undertakes its business through both, lease arrangements in some states and tie-up arrangements in some other states. The sales made by SSL under the lease arrangement form a part of its revenue from operations. However, in the case of the sales made under the tie-up arrangement, SSL is entitled to the economic surplus earned on sales.

Shares of Tilaknagar Industries Limited was last trading in BSE at Rs. 299.65 as compared to the previous close of Rs. 308.70. The total number of shares traded during the day was 121803 in over 1899 trades.

The stock hit an intraday high of Rs. 311.10 and intraday low of 297.10. The net turnover during the day was Rs. 36935034.00.

Source : Equity Bulls

Keywords

TilaknagarIndustries INE133E01013 FurthernInvestment SpacemanSpiritsLab IndianCraftGin Rum Samsara Sitara