BCL Industries shares rise 7% as board approves conversion of warrants into shares

Shares of BCL Industries surged during the trading session on Thursday after the company informed investors about conversion of warrants into equity shares by investors. The company informed about the same through an exchange filing during the session.

The company board of BCL Industries consider and approved the allotment 6,00,000 equity shares with a face value of Re 1 each on an adjusted basis, at a issue price of Rs 36 apiece, upon receiving Rs 1.62 crore on the conversion at price of Rs 27 apiece, 75 per cent of the issue price, said the exchange filing.

Investors had converted 60,000 warrants but were given 10 shares on conversion, on an adjusted basis post its stock split in 1:10 ratio in October 2023. The company had issued warrants at an issue price of Rs 360 apiece and a total of 54,66,334 warrants were issued in March 2023, it added.

Following the announcement, shares of BCL Industries surged 6.75 per cent on Thursday to Rs 73, commanding a total market capitalization of close to Rs 2,000 crore. The scrip had previously settled at Rs 68.38 in the previous trading session on Wednesday. The stock has surged 92 per cent from its 52-week low at Rs 38.06, hit in March 2023.

Consequent to this conversion of warrants and allotment of equity shares, 27,21,334 warrants remain pending for conversion and these warrant holders are entitled to get their warrants converted into equity shares of the company by paying remaining Rs 27 apiece (on an adjusted basis) 75 per cent within 18 months from the date of warrant allotment, said the company.

Pursuant to present conversion, the issued, subscribed and paid-up equity share capital of BCL Industries stands increased to Rs 26,89,50,000 consisting of 26,89,50,000 fully paid-up Equity Shares of Re 1 each.The new equity shares so allotted, shall rank pari passu with the existing equity shares of the company, the filing added further.

The company board of BCL Industries will meet on Saturday, February 3, 2024, to consider and approve the financial results for the period ended on December 31, 2023. BCL Industries is the only company in India and the South Asian region to have a forward and backward integrated distillery ethanol plant. 

Also read: Hot stocks on January 25: IREDA, Sterling and Wilson, RITES, RailTel, KPIT Tech and more    

Also read: Stock recommendations by analyst for January 25, 2024: NMDC Steel, CEAT and PowerGrid

Also read: Canara Bank shares rise after Q3 results; What analysts say about Jhujhunwala's largest banking bet?