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

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

The board has fixed the issue price at Rs 360 bearing a nominal value of Rs 10 each on a preferential basis after allottees pay 25 per cent of the issue price.

The filing said that warrants entitle the allottees to apply for and be allotted an equal number of equity shares of the company for each warrant held by them on payment of the remaining 75 per cent amount within 18 months from the issue date.

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

Convertible warrants are simply warrants that are convertible into equity shares after a specific period. Investors have the right to purchase a certain amount of equity shares at a later date. In general, companies issue warrants as a way to raise funds.

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

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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.

Shares of BCL Industries surged 3 per cent to close at Rs 427 on Friday.

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