BCL Industries’ shares jumped more than 5 per cent during the early trade after the company board allotted fully convertible warrants to shareholders. The warrants have been awarded to promoters and non-promoter shareholders of the company.
BCL Industries’ board has allotted 54,66,334 fully convertible warrants with a face value of Rs 10 each at an issue price of Rs 360 per warrant on a preferential basis, the company said in an exchange filing. It has received a subscription amount of 25 per cent of the issue price from the allottees, it said.
BCL Industries Ltd had received approval from the shareholders of the company and ‘in-principal approval’ from the stock exchanges earlier, the exchange filing added.
Each warrant entitles the allottee to apply for and get them converted into equity shares on the payment of a balance of 75 per cent of the issue price within 18 months of the date of issue of the warrant. Each warrant is convertible into one equity share of the company.
Shares of BCL Industries jumped about 5 per cent to Rs 446 on Monday following the announcement, before giving up their gains partially. The scrip had settled at Rs 426.95 on Friday. The edible oil company was commanding a market cap little less than Rs 1,100 crore.
Shares of BCL Industries have rallied about 40 per cent in the year 2023 so far, whereas the counter has gained 25 per cent in the last six months. The stock has zoomed about 270 per cent in less than two years, from its price of Rs 121 in May 2021.
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 of Rs 25.16 crore in its October-December 2022, with a total income stood at Rs 450.43 crore.
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