Sunday, April 3, 2022

ifb: IFB Agro board okays ₹40 cr electoral bond contribution

Kolkata-based IFB Agro Industries said its board has approved contribution of up to Rs 40 crore to political parties by subscribing to electoral bonds. In an unusual disclosure to the stock exchanges on April 1, the liquor maker also mentioned “excise related issues that are being faced/affecting” by the company.

“The Board of Directors in its meeting held on 31st March, 2022 considered such issues and in the best interest of the Company and all its stakeholders decided to approve contributions to political parties by way of subscription of Electoral Bonds in one or more phases. Not exceeding ₹40 crore for the financial year 2022-23,” the IFB release said. IFB shares closed down 4.3% at ₹659.25 on Friday. Its market capitalization was around ₹617 crore.

The company said that the communication regarding the excise-related issues is “in continuation of our earlier letters to the stock exchanges.” IFB could not be reached for comment.

In December 2020, IFB Agro said that its liquor business is “suffering – and in danger”. “… We have been chosen by some Excise officers not to bow to their illegal demands – also requested by Hon’ble Chief Minister of West Bengal and Hon’ble Minister of Finance, Commerce & Industry of West Bengal State. To look into the same / to investigate,” the company said in an exchange disclosure.

In the same announcement to the exchanges in December 2020, IFB Agro said that “no offender has been brought to book” for the alleged violence at its distillery in West Bengal in June 2020.

“…we have informed that our distillery, which is located at Nurpur, South 24 Parganas, West Bengal, was attacked by a group of over 150 armed goons on June 25, 2020, resulting in the distillery being forcibly was closed,” the reveal said.

Originally published at Pen 18

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