Optiva Securities serves as the company’s exclusive broker and underwriter.
The placing is subject only to the placing shares being included in the standard part of the Financial Conduct Authority’s official list and trading on the London Stock Exchange’s main market, which is expected to take effect on or about January 22.
In addition to the placement, Tirupati has also accepted subscription for 5.67 million ordinary shares, worth Rs 0.025 each, from certain directors and members of the senior management team at the placement price, which will be settled by offsetting certain shares. The Company owes these individuals any prior fees or compensation related to their offices or work with the Company.
In order to avoid incurring additional costs associated with regulatory requirements under the UK Prospectus, the issue and acceptance of the Subscription Shares will be deferred to a date when the Company would have sufficient flexibility to accept the Subscription Shares without the need to issue a prospectus. Bookings are scheduled around April 24th.
Proceeds from the placement will be used as working capital to enable the company to optimize production at its existing facilities in Madagascar.
The entire placing proceeds may be used to meet operational working capital requirements by capitalizing the unpaid contributions of certain directors and senior management as part of the subscription.
Tirupati is in discussions with some potential lenders to secure additional funds.
These funds will be used to improve the production process, give full play to the company’s operational capabilities, and achieve the annual production target of 36,000 tons.
Tirupati also clarified that no funds had been raised for the convertible debt instrument as of January 16, which the company had put on hold to focus on accelerating bank financing sources and other non-dilutive capital sources.
The company said the funds raised will help the company simultaneously optimize its ongoing operations.
Tirupati continues to focus on increasing production in Madagascar with an immediate target of reaching 1,500 tonnes per month and expanding the market in view of growing opportunities.
“Since the start of the fiscal year, we have completed the development work we began following our December 2020 listing and have continued to ramp up project operations despite limited liquidity. This comes as we continue to pursue non-dilutive financing efforts. The sub-placement will provide support to the business.
CEO Shishir Poddar said: “Path and subscription will allow us to focus on increasing production and sales in our Madagascar operations, which are constrained by limited available working capital.”
