Vintage Coffee & Beverages Board Eyes Fresh Fundraising to Fuel Growth Ambitions

Vintage Coffee & Beverages Ltd is set to consider a new fundraising proposal, signaling a strategic push to bolster its financial resources and expand its operations. The company’s Board of Directors is scheduled to meet to deliberate on raising capital through a preferential issue or private placement of securities for cash, subject to necessary regulatory and shareholder approvals.

 

Key Highlights:

 

Board Meeting on Fundraising: The agenda includes evaluating a proposal for raising funds via preferential issue or private placement, with the determination of issue price and other modalities to follow regulatory norms.

 

Recent Capital Infusions: In the past year, Vintage Coffee has actively pursued capital raising. Notably, in April 2024, the company approved the issuance of up to 7.8 million shares at ₹55 per share, bringing in ₹429 million from strategic investors including Saint Capital Fund and Unayaan Trade and Commerce.

 

Ongoing Expansion: The company recently commenced commercial production of instant coffee at a new facility, highlighting its commitment to scaling up operations and product lines.

 

Strong Financial Position: Vintage Coffee’s profitability is on an upward trajectory, with net debt levels decreasing and a robust balance sheet compared to industry peers. The company’s recent dividend payouts, though modest, reflect a focus on reinvestment and growth.

 

Shareholder Value: The proposed fundraising is expected to support further expansion, enhance working capital, and strengthen the company’s market position in the competitive beverages sector.

 

This move underscores Vintage Coffee & Beverages’ proactive approach to capital management and its ambition to capture larger market opportunities in the fast-growing coffee and beverages industry.

 

Sources: Capital Market, MarketScreener, Zerodha