BCL Industries has announced that its board has approved the allotment of convertible warrants to promoters, promoter groups and non-promoters’ categories.
The company informed exchanges that the board at its meeting held on Saturday, March 4, approved allotment of 54,66,334 fully convertible warrants of the nominal value of Rs 10 each at an issue price of Rs 360 per warrant on a preferential basis after receipt of subscription amount being 25 per cent of the issue price from the allottees.
A convertible warrant empowers investors with the right to purchase a certain amount of the company’s shares at a later date. Warrants are generally issued by companies as a way to raise capital to meet business needs.
The warrants entitle the allottee to apply for and be allotted an equal number of equity shares for each warrant held by them on payment of a balance 75 per cent of the issue price within 18 months from the date of issue of these warrants, the filing said.
These warrants, allotted on a preferential basis, shall be locked for a specified period per the provisions of Chapter V of the SEBI Regulations, 2018.
The board at its meeting also reviewed and approved the schedule of repayment of existing debt amounting to Rs 30 crore. Besides, it approved the appointment of SEBI registered external credit rating agency for the purpose of monitoring the utilization of the proceeds of this preferential issue.
BCL Industries in the December quarter of FY23 reported 4 per cent rise in its net profit at Rs 25.16 crore as against Rs 24.23 crore in the same quarter last fiscal. Its net sales increased nearly 21 per cent to Rs 448.71 crore in Q3.
