Franklin Industries Ltd — Updates, 04-06-2025: Company Update

Franklin Industries Limited has announced a proposed rights issue of 48.20 Cr equity shares at ₹1 each, aggregating to ₹48.20 Cr on a 5-for-3 basis to existing equity shareholders. The net proceeds will be used primarily for working capital and general corporate purposes. The company trades in agricultural commodities including wheat, rice, maize, vegetables, fruits, and also deals in gold and silver wholesaling. It operates predominantly on a B2B model and engages in contract farming by leasing agricultural land, sharing yields with farmers. The company has witnessed significant growth, with total income rising to ₹83.88 Cr and PAT of ₹10.84 Cr for nine months ended December 2024, supported by a robust increase in agricultural trading. Its top 10 customers and suppliers contribute 61% and 55% of revenues and procurement, indicating dependence on key relationships. There are no identifiable promoters; the company is professionally managed. The equity shares are listed on BSE and Calcutta Stock Exchange; the rights shares will be listed on BSE. The company has outstanding direct tax disputes aggregating ₹17.87 Cr (excluding interest), with appeals filed. There are no outstanding criminal or civil litigations against the company or its directors. The rights entitlement will be credited in demat form and are tradable on BSE during the renunciation period. Applications are mandatorily through ASBA with full payment on application, and allotment will be in dematerialized form only. The offer excludes certain overseas shareholders who have not updated their Indian address. The board has approved the issue, and the rights shares are expected to be listed by mid-July 2025. Audit reports contain a qualification on inventory valuation due to lack of quantity-wise detail but affirm overall fair presentation.