NHC Foods Limited achieves significant growth, unveils Rs 47.42cr rights issue

NHC Foods Limited, a leading exporter of agricultural commodities and spices, has achieved remarkable financial performance in the second quarter of FY2024, reporting a 377% surge in net profit to ₹205.08 lakhs and a 60.1% increase in revenue, reaching ₹6617.08 lakhs. Building on this momentum, the company has announced a ₹47.42 crore rights issue, aimed at enhancing working capital and repaying secured loans, a strategy expected to bolster profitability and shareholder value.

The Rights Issue Committee of the Board of Directors approved the offering, which grants eligible equity shareholders the opportunity to subscribe at a ratio of 4:1. The subscription price has been set at ₹1 per share, significantly below market value, presenting an attractive opportunity for investors. The record date for eligibility is November 26, 2024, with the issue open for subscription from December 5 to December 18, 2024.

The company’s Chairman and Managing Director, Apoorva Shah, highlighted the strategic intent behind the rights issue, emphasizing its role in strengthening public shareholding and optimizing the company’s capital structure. He underscored that the initiative aligns with NHC Foods’ broader objective of driving shareholder participation while enhancing financial flexibility to support its growth ambitions.

The company has demonstrated consistent operational excellence, achieving record-breaking sales and turnover figures in consecutive quarters. Shah noted that NHC Foods is not only focused on maintaining its strong domestic presence but is also actively exploring new international markets. With a legacy dating back to 1960, the company has earned a reputation as a trusted name in the export of premium agricultural products and spices under brands such as Indi Bite, Eat’mor, and Saaz.

NHC Foods is also investing in technology and process enhancements to sustain its growth trajectory. The management expressed confidence in the company’s future, driven by targeted strategies for geographical diversification and product innovation.

About NHC Foods Limited

Founded in 1960, NHC Foods Limited is a government-recognized three-star export house specializing in the merchant export of spices, grains, oil seeds, pulses, and dry fruits. The company serves over 30 countries globally and is committed to delivering quality and innovation across its offerings.