Add-Shop E-Retail Ltd. Rights Issue priced at Rs. 54 per share – 36% discount to share price on 11 Aug; 

Add-Shop E-Retail Ltd Rights Issue opens on August 17 and closes on August 30 2022.

Highlights:- Funds raised through the issue will be used to meeting working capital requirements for the company’s business activities and general corporate purposes The rights entitlement ratio for the proposed rights issue is 1:1; 1rights equity shares of Rs. 10 each for every 1 equity shares of Rs.10 each held by the equity shareholders Company has fixed August 8 as record date for the purpose of determining the equity shareholders entitled to receive the rights entitlement in the rights issue For FY22, company reported 148% rise in Net profit to Rs. 19.1 crore, Sales grew 103% to Rs. 159.7 crore

NATIONAL/ AHMEDABAD, AUGUST 15, 2022 (GPN): Add-Shop E-Retail Ltd one of the leading company in the production and distribution of Ayurveda supplements, Herbal cosmetics & Personal care range, Animal feed supplements and Organic fertilizers is scheduled to open its Rs. 48.90 crore rights issue on August 17, 2022. The funds raised through the issue will be utilised to meet the working capital requirements required to fund company’s expansion plans, entering new geographies and for general corporate purposes. Right issue are offered at a price of Rs. 54 per share – 36% discount to share price of Rs. 84.25 per share on August 11 on BSE. Rights Issue closes on August 30, 2022. Finshore Management Services Ltd is the lead manager of the issue.

The Company will issue 90,56,255 fully paid-up Equity Shares of face value of Rs. 10 each for cash at a price of Rs. 54 per Equity Share (including a premium of Rs. 44 per Equity Share) aggregating to Rs. 48.90 crore on a rights basis to eligible equity shareholders in the ratio of 1:1 (1 Equity Shares for every 1 Equity shares fully paid-up Equity Share held by the Eligible Equity Shareholders of the Company, as on the record date). Last date for On-market Renunciation of Rights Entitlements is August 24, 2022.

Commenting on the development, Mr. Dinesh Pandya, Chairman and Managing Director, 

Add-Shop E-Retail Ltd said, “Company has taken important strategic initiatives in the recent past with a focus to expand product line, adding more channel partners and hiring more farmers and associates. Our long-term focus continues to be investing in growth through new product launch, expanding retail footprints. With the recent installation of  a new line of machinery manufacturing capacity of the company will increase to 30 million metric tons per year. Proceeds of the issue will further strengthen company’s balance sheet and help fund its strategic growth initiatives.” 

Add-Shop E-Retail Limited is founded by a visually impaired Mr. Dineshbhai Pandya – a first-generation entrepreneur, trainer, and motivator. The company aims to promote healthy living and implement solutions for two very deep-rooted challenges of our nation – unemployment & unhealthiness of our citizens. Company products are 100% Ayurvedic with no chemicals and cruelty-free. Add Shop has been awarded for being in the Top 100 SME Award in the year 2018-19.

Post the rights issue, total outstanding shares of the company should increase to 2,83,12,956 equity shares from 1,92,56,701 equity shares as on June 2022. 

For FY 22, Company reported a net profit of Rs. 19.1 crores – growth of 148% as compared to net profit of Rs. 7.7 crore in FY21. Sales for FY22 was reported at Rs. 159.7 crore – growth of 103% as against sales of Rs. 78.6 crore in FY21. Company has reported strong CAGR of 92% in Sales and 180% in Net Profit for the last 3 years with a healthy ROE of 64% and ROCE at 67.8%. Promoter Group holding in the company is 52.97% as on 30 June 2022. 

Add-Shop E-Retail Ltd is one of the pioneer to promote organic farming and produce organic farm goods in the country. Started in 2015 with just two goods in the Agricultural segment and eight in other categories, over time, the company’s product offering has expanded to 120 items, with 10 distinct Agriculture products and the remaining in other categories. Company has strong network of over 6500 distributors and 2000 franchises across the country.

About Add-Shop E-Retail Limited 

Established in 2015 with an aim to provide the best in globe ayurvedic, personal care, and agricultural products, Add-shop fulfils the emerging healthcare needs of millions of houses and adds extra mileage to India’s developing animal feed supplement market with a hallmark of unbeaten product quality. Add-shop has stayed ahead of the curve in this competitive era of medications and dietary supplements by concentrating on bridging the nutrition gap with Ayurvedic products. The Company offers a comprehensive product range across ayurvedic and personal care products when it comes to product applications.

With its new state-of-the-art manufacturing facilities, company will attempt to satisfy the agricultural and animal feed supplement product requirements of diverse geographies. To scale up production at the new manufacturing plant, the Company will harness its strong network of over 6500 distributors and 2000 franchises across the country.

The business commenced operations in 2015 with just two goods in the Agricultural segment and eight in other categories; however, over time, the company’s product offering has expanded to 120 items, with 10 distinct Agriculture products and the remaining in other categories. Consequently, the Company has lived up to its potential and kept its commitments to its stakeholders. Furthermore, the vast majority of the goods are protected by trademarks, registrations, and patents.

Directors of ADD-SHOP E-RETAIL LIMITED are DINESHBHAI BHANUSHANKAR PANDYA, JAYSHREE DINESHBHAI PANDYA, DEVIBEN DINESHBHAI PANDYA, JIGAR DINESHKUMAR PANDYA, RAJESHKUMAR RASIKLAL PAREKH, DEVANG DINESHBHAI PANDYA, DADHANIA VIVEK GOPALBHAI, RUSHABH VORA, YAGNIK DILIPBHAI MUNDADIYA, KINJAL JASMATBHAI KHUNT and NIRAJKUMAR KISHORBHAI MALAVIYA.