Abans Enterprises Approves Fundraising of Up to ₹10 Billion via Debt Securities

Abans Enterprises Ltd has announced that its Board of Directors has approved a fundraising plan of up to ₹10 billion (₹1,000 crore) through the issuance of debt securities on a private placement basis. This strategic move aims to strengthen the company’s financial position and support its growth ambitions across trading and distribution of commodities.

 

Key Highlights:

 

The Board approved raising funds up to ₹10 billion by issuing debt securities, such as non-convertible debentures or bonds, through private placement.

 

The fundraising will provide Abans Enterprises with additional capital to fuel expansion, diversify into new markets, and enhance operational capabilities.

 

The decision comes as the company continues to report strong growth in its core businesses, including trading of bullion, base metals, and agri commodities.

 

Abans Enterprises has demonstrated significant improvement in financial metrics, with a 12x increase in net worth since acquisition, and a turnover of ₹1,775 crore in FY24.

 

The company’s debt-to-equity ratio stood at 0.84 at the end of FY24, indicating a prudent leverage position and capacity to absorb additional debt for growth.

 

The proposed fundraising is expected to further bolster liquidity, support working capital requirements, and enable the company to capitalize on emerging opportunities in the commodities sector.

 

The move aligns with Abans Enterprises’ long-term strategy to scale up operations and maintain a competitive edge in the market.

 

The fundraising plan is subject to necessary statutory and regulatory approvals and will be executed in tranches as per market conditions and business requirements.

 

Source: Business Standard, Economic Times, Abans Enterprises Annual Report