Som Distilleries & Breweries shares gain 3% as Board mulls preferential fundraising

Som Distilleries & Breweries witnessed a morning trade surge of approximately 3 percent on July 5, following the company’s announcement of considering a preferential issue for fundraising.

At 9.21 am, the stock was trading at Rs 300.90 on the National Stock Exchange, up 2.98 percent from the previous close.

Som Distilleries and Breweries has scheduled a board meeting on July 8 to discuss the possibility of fundraising through a preferential basis by issuing convertible equity warrants to promoters and/or potential investors, as per the regulatory filing. The funds raised from this initiative will be allocated towards the company’s capital expenditure and working capital needs.

Earlier, Som Distilleries announced its Q4FY23 results, reporting net sales at Rs 252.57 crore in March 2023 up 73.23 percent year on year (YOY) against Rs. 145.80 crore in March 2022. The quarterly net profit of the company came in at Rs. 15.87 crore in March 2023, up 148.32 percent YOY, compared to Rs. 6.39 crore in the corresponding period last year.

Recently, the beverage and distillery was also in focus after it announced that its market share in Karnataka reached 20.1 percent, the highest achieved by the company in the state to date.

The management attributed this growth market share to the effectiveness of strategic initiatives, product innovations, robust marketing campaigns, and a strong distribution network. Additionally, Som Distilleries aims to build upon its success while expanding its presence further in the market.

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