Swiss Military Consumer board approves rights issue

The company's board approved raising upto Rs 50 crore through rights issue of the equity shares.

The board of Swiss Military Consumer Goods (SMCG) also approved constitution of the "rights issue committee" to decide detailed terms and conditions of the rights issue.

On 14 February 2022, the company announced that it plans to raise funds for augmenting the working capital required for the business verticals of home appliances and men's innerwear.

Last year, SMCG raised Rs 9.83 crore through a right issue. It allotted 4.91 crore equity shares on a rights basis to the existing equity shareholders at an issue price of Rs 2 per share in the ratio of 1:1. The rights issue opened on 24 November 2021 and closed on 8 December 2021.

SMCG is primarily engaged in the business of promoting, marketing and selling lifestyle products under the brand "Swiss Military". It has also added men's innerwear and brown goods/home appliances category. It has recently ventured into business of manufacturing Radio Frequency Identification (RFID) e-seal.

"Swiss Military" is an internationally renowned and celebrated Swiss brand which is duly registered in over 40 countries.

SMCG reported net profit of Rs 1.02 crore in Q3 December 2021 as against net loss of Rs 0.07 crore in Q3 December 2020. Net sales surged to Rs 17.76 crore in Q3 December 2021 as against Rs 0.25 crore in Q3 December 2020.

Shares of SMCG hit a lower circuit of 5% to settle at Rs 26.65 on Friday, 25 February 2022.

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