Shares in Elders jumped more than 20 per cent after the agribusiness moved to raise $57 million to help cut debt, and secured new banking facilities.
Chief executive Mark Allison said the moves would allow Elders to direct all its future cash flows to improving and expanding its rural services business.
"We will no longer be distracted by a conglomerate asset structure, asset sales or debt repayments," he said on Monday.
Elders shares came out of a trading halt after the announcement of the capital raising and new banking facilities and gained five cents, or 23.8 per cent, to 26 cents.
Elders has been engaged in a long transformation from a complex, underperforming conglomerate into as smaller, "pure" agribusiness with lower costs and lower debt.
The group has exited operations in "non-core" sectors such as automotive components, forestry, timber processing, telecommunications and seafood production.
Elders issued 68.25 million shares, at 15 cents each, raising $10.2 million on Monday.
It also announced a $47 million entitlement offer, under which shareholders can subscribe for three new Elders shares for every five shares held, at 15 cents each.
Elders said completion of the equity raising, and recently completed asset sales, would cut pro-forma term debt as at March 31, 2014 from $118 million to $21 million.
The company has also secured new banking facilities which it says will give it flexibility and room to grow the business during normal seasonal fluctuations.
Lonsec senior client adviser Michael Heffernan said the fact that Elders had successfully completed part of its capital raising had generated a bit more investor confidence in Elders.
Elders is hoping to lift group earnings to $60 million and generate a return on capital of 20 per cent in fiscal 2017.
Elders expects underlying earnings before interest and tax in fiscal 2014 to be between $23 million and $28 million - a turnaround of up to $77 million on the previous year.
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