BCL Industries to issue nearly 55 lakh convertible warrants; stock surges


Image Source: PTI Photo for representation.

BCL Industries, a leading edible oil and distilleries company, has approved allotment of convertible warrants to categories of promoters, promoter groups and non-promoters. According to the exchange filing, the board has approved the allotment of 54,66,334 fully convertible warrants.

The board has fixed Rs 360 with face value of Rs 10 on a preferential basis after the allottees have paid 25 per cent of the issue price.

The warrants entitle the allottees to apply for and be allotted an equal number of equity shares in the company for each warrant on payment of the remaining 75 percent within 18 months from the date of issue, the filing said.

Also read: Airbnb lays off 30% of staff despite profitable year

The warrants will be allotted on a priority basis and locked for a specified period as per the provisions of Chapter V of SEBI Regulations, 2018, the filing said.

Convertible warrants are simply warrants that convert into equity shares after a specified period. Investors have the right to purchase a fixed amount of equity shares at a later date. Generally, companies issue warrants as a way to raise funds.

Meanwhile, the company has also approved repayment of existing debt of Rs 30 crore and also approved the appointment of an external credit rating agency registered by SEBI for the purpose of monitoring the utilization of proceeds.

Also Read: Old Pension Scheme: Select govt employees given one-time option to join OPS

BCL Industries is the only company in India and the South Asian region to have a forward and backward integrated distillery ethanol plant. It also deals in edible oil along with refined oil.

Shares of BCL Industries rose 3 percent to close at Rs 427 on Friday.

Latest business news

Read original article here

Leave A Reply