BCL Industries jump 5% as board approves conversion of warrants into shares

Shares of BCL Industries rose more than 5 per cent during the trading session on Thursday after the company announced the conversion of warrants into equity shares by select investors. However, the stock eased down marginally and settled more than 4 per cent up for the day.

BCL Industries said that the company has converted 50,000 warrants into 5,00,000 equity shares (post-split adjustment) upon the payment of remaining 75 per cent of the price by the investors, who were issued warrants on the preferential basis in an exchange filing on Wednesday. The company has received 1,35,00,000 on the conversion of these warrants.

"Consequent to this conversion of warrants/allotment of equity shares 27,81,334 warrants remain pending for conversion and these warrant holders are entitled to get their warrants converted into equity shares by paying remaining 75 per cent Rs 270 per warrant within 18 months from the date of warrant allotment," said the company.

Following the announcement, shares of BCL Industries rose more than 5 per cent to Rs 67.35 on Thursday. However, stock finally settled at Rs 66.90 for the day, up 4 per cent from its previous close, commanding a total market capitalization of close to Rs 1,700 crore.

Earlier this month, BCL Industries and its subsidiary Svaksha Distillery have cumulatively bagged orders worth Rs 567.4 crore for the year starting November 1, 2023 to October 31, 2024. Both the entities will aggregately supply 82,902 kilolitres (KL) of ethanol during the given year.

BCL Industries is the only company in India and the South Asian region to have a forward and backward integrated distillery ethanol plant. It is also engaged in the business of edible oils including refined oil. The company reported a net profit at Rs 25.16 crore in its October-December 2022, with a total income of Rs 450.43 crore.