Rights Issue Launched (May 27 – Jun 16, 2025): Issued 31 lakh equity shares at ₹325 each (face value ₹10 + premium ₹315), leading to a target raise of ₹100.75 cr.
Funds Raised So Far: ~₹85 cr successfully subscribed, with the remaining ₹15 cr expected by mid-July.
Investor Participation: Led by DS Group and existing backers like Kirin. Over 300 investors, including a new family office, have participated.
Purpose of Funds:
Working capital & vendor payments
General corporate expenses & compliance strengthening
Rights price (₹325) was 55% lower than previous investment price (₹718), signaling tight liquidity.
FY24 metrics: Revenue fell 22% to ₹638.5 cr; losses surged 68% to ₹748.8 cr.
Failure to timely renew licenses after shifting from “Private Ltd” → “Ltd” status led to a 4–6 month halt in several states, wiping out ₹80 cr in inventory.
Supply chain and distribution suffered major downtime, causing sharp volume and revenue decline.
Bira’s largest production facility in Andhra Pradesh, contributing 25–30% of its total output, was shut down in March 2025 due to non-payment of excise dues.
The unit was fully vacated, and contracts terminated. Promoter personally intervened to retrieve stuck inventory.
Post-closure, production dropped from 22 lakh cases/month to just 10,000–20,000 cases/month (via Mysuru contract unit only).
Workforce halved from ~975 to ~500 employees.
Shifted to an asset-light model using third-party contract manufacturers (Mysuru, Nagpur), while shutting units like Tripti Brewery (Madhya Pradesh).
Manufacturing capacity cut by ~40%, projecting ₹600 cr in savings and improved margin outlook (targeting 66% gross margin by FY26).
Operational Revival: Delhi & UP markets restarting; UP factory ramp-up planned by 2026.
Regulatory Remediation: Licenses re-registered across states; compliance infrastructure being strengthened.
Restructuring in Progress: Leaner cost structure, emphasis on contract brewing, and pivot to core high-demand markets (Delhi, Maharashtra, UP, Andhra).
| Focus Area | Key Metrics |
|---|---|
| Rights Issue Closure | Achieving full ₹100 cr by mid-July |
| UP Brewery Setup | Construction and ramp-up over H2 FY25 |
| Q4 FY25 Performance | Any sign of revenue recovery and EBITDA improvement |
| Additional Fundraising | Possibility of debt deals (e.g., ₹500 cr via BlackRock) |
| License Stability | No recurrence of compliance delays |
The rights issue is a strategic lifeline to stabilize operations and fund working capital post major disruptions.
Bira is now more asset-light and focused, with strict cost controls and contract manufacturing.
However, risks remain: completion of funding, UP facility delivery, no further regulatory setbacks, and early revenue recovery.
For existing and prospective investors, the completion of rights issue & performance of H2 FY25 will be critical catalysts for Bira’s unlisted market valuation.
