BCL Industries announces to raise ₹201 Cr via 55 lakh convertible warrants

Market


With a market valuation of 998.12 Cr, BCL Industries Ltd. is a small-cap business that operates in the Fast Moving Consumer Goods (FMCG) industry. Since its founding in 1976, BCL Industries Ltd. has developed into a well-rounded industry player with operations in key industry sectors such as rice sheller, solvent extraction, oil extraction, distillery-ethanol industry, and vegetable oil refining (physical and chemical). BCL Industries said on Thursday that its board has authorised a plan to provide promoters and public shareholders 55.8 lakh fully convertible warrants worth 201 crore. Up to 55.83 lakh fully convertible warrants with a face value of 10 each would be issued and distributed by the firm for a total sum of 201 crore. Each warrant carries the right to subscribe for one equity share at the issue price of 360.

The company has said in a stock exchange filing that its Board of Directors has considered and approved “to issue and allot up to 55,83,334 (Fifty-Five Lacs Eighty-Three Thousand Three Hundred and Thirty-Four only) fully Convertible Warrants (‘Warrants’) of face value of Rs. 10/- each, carrying a right exercisable by the Warrant holder to subscribe to one Equity Share per Warrant to persons belonging to ‘Promoter & Promoter Group’ and ‘Non-Promoter, Public Category’ on preferential basis at an issue price of Rs. 360/- (Rupees Three Sixty Only) per Warrant, subject to shareholders’ approval and other statutory approvals, in accordance with provisions of Chapter V of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended up-to-date and applicable provisions of Companies Act, 2013 and rules made there-under, aggregating amount of up to Rs. 201,00,00,240/- (Rupees Two Hundred One Crore Two Hundred and Forty only) for cash.”

The total number of securities proposed to be issued or total amount for which the securities will be issued is up to 55,83,334 warrants of face value of Rs. 10/- each to persons belonging to Promoter & Promoter Group and Non-Promoter, Public Category.

The shares of BCL Industries Ltd closed today on the NSE at 414.00 apiece level, up by 1.10% from the previous close of 409.50. The stock recorded a total volume of 530,435 shares compared to the 20-Day average volume of 311,253 shares. Based on the technical outlook of the stock, Ravi Singh, Vice President and Head of Research at Share India said “BCL Industries is witnessing profit booking after touching the high of 420 levels recently. The momentum indicator and MACD is still showing Buy strength intact in the counter. The stock is trading well above its moving averages, suggesting a further bull run ahead. BCL Inds stock may touch the target of 440 levels in near term having support near 380 levels and resistance around 450 levels.”

The stock has produced a multibagger return of 239.62% over the past five years, and a multibagger return of 226% during the past three years. The stock has appreciated by 27.74% YTD so far in 2023. The stock had touched a 52-week-high of 530.00 on (23-Mar-2022) and a 52-week-low of 278.65 on (15-Nov-2022).


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