Vintage Coffee and Beverages Secures ₹215.76 Crore via Preferential Issue to Boost Global Expansion
By Shishta Dutta | Published at: Jul 7, 2025 10:15 AM IST
Mumbai, 7 July 2025: Vintage Coffee and Beverages Ltd (BSE: 538920 | NSE: VINCOFE) has successfully raised ₹215.76 crore through a preferential allotment of equity shares and convertible warrants to promoters and investors. This strategic capital infusion will support the company’s upcoming manufacturing expansion and international growth plans.
On 7 July 2025, Vintage Coffee and Beverages Ltd’s stock price declined by ₹6.57 or 4.64%, trading at ₹135.12 as of 9:58 am IST. The stock opened at ₹142.20, reached an intraday high of ₹142.35, and dipped to a low of ₹134.00, indicating a cautious market response following the fundraising announcement. With a market capitalisation of ₹1,760 crore and a P/E ratio of 42.37, the stock remains above its 52-week low of ₹75.00, yet just below its 52-week high of ₹143.00. The company has not declared any recent quarterly dividends.
Preferential Allotment Aims to Strengthen Operational Capacity
The Board of Directors approved the fundraising initiative during its meeting on 4 July 2025. The preferential allotment includes:
| Instrument Type | Quantity Issued |
|---|---|
| Equity Shares | 1,50,00,000 shares |
| Convertible Warrants | 24,00,000 warrants |
| Aggregate Value | ₹215.76 crore |
|---|---|
| Issue Method | Preferential Allotment |
| Regulation Cited | SEBI ICDR Regulations, 2018 (as amended) |
The allotment is subject to necessary shareholder and regulatory approvals under the SEBI (ICDR) Regulations. The structure aims to attract credible institutional investors and strengthen capital reserves for the next phase of growth.
Capital to Fund New Freeze-Dried Coffee Facility
Proceeds from the issue will be deployed to set up a 5,000 MTPA greenfield freeze-dried coffee plant, aimed at the premium global coffee segment. This plant will complement the company’s existing production and help meet rising demand for value-added coffee products.
By 31 March 2026, Vintage Coffee plans to:
- Expand spray-dried and agglomerated coffee capacity from 6,500 MTPA to 11,000 MTPA
- Introduce a new freeze-dried coffee unit with a 5,000 MTPA capacity
This expansion will strengthen output and diversify product offerings, reinforcing the company’s ability to compete in high-demand international markets.
Leadership Highlights Investor Confidence and Global Ambition
Commenting on the development, Mr. Balakrishna Tati, Chairman and Managing Director of Vintage Coffee and Beverages Ltd, stated:
“VCBL remains at the forefront to capture the global coffee demand backed by quality, service, and product innovation. The proposed preferential issue of shares will bring marquee institutional investors of repute, demonstrating confidence in the company’s products and growth prospects. The issue will support VCBL’s growth through FY26–FY28. I am thankful to all investors and stakeholders for supporting us in this journey ahead.”
His statement reflects confidence in the long-term strategy and the company’s readiness to scale sustainably across markets.
Expansion to Open Doors Across Multiple Global Regions
The expansion will enhance Vintage Coffee’s international presence, particularly across Southeast Asia, Latin America, the Middle East, Europe, and West Africa. The company’s focus remains on capturing market share in premium and value-added coffee products, supported by increased manufacturing capacity and consistent product quality.
Company Background: From Local Roots to Global Reach
Vintage Coffee and Beverages Ltd, formerly known as Spaceage Products Ltd, is headquartered in Secunderabad, Telangana, and is listed on both the BSE and NSE. The company is a prominent manufacturer and exporter of spray-dried, agglomerated, and freeze-dried coffee, catering to domestic as well as international markets.
The successful fundraising marks a significant milestone in Vintage Coffee’s journey to becoming a global name in the coffee manufacturing sector.
REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/aab5151e-fab6-437a-9ee8-c5bb7423d026.pdf
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