850% Return In 3 Yrs, BCL Industries Approves Warrants Worth Rs 4.05 Cr

The shares of BCL Industries were in the green in the afternoon session of Wednesday after the company approved the issue of warrants worth Rs 4.05 Cr. The stock opened on the BSE at Rs 540.05 apiece and was trading with an upside gap of 0.03% at Rs 541.60.

Based on a meeting held on Tuesday, the Board has decided to convert 1,50,000 warrants into 1,50,000 equity shares with a face value of Rs. 10 each, out of the remaining 44,09,334 warrants on a preferential basis, upon receipt of an amount totalling Rs. 4,05 Cr at a rate of Rs. 270 per warrant (representing 75% of the issue price per warrant) from the allottees.

Following this conversion of warrants into equity shares, 42,59,334 warrants are still available for conversion. The warrant holders of these outstanding warrants have the right to convert their warrants into an equal number of company equity shares by paying the remaining 75%, or Rs. 270 per warrant, within 18 months of the date of the warrant's allotment.

"Pursuant to present conversion, the Issued, Subscribed and Paid-up Equity Share Capital of the Company stands increased to Rs. 25,35,70,000/- consisting of 2,53,57,000 fully paid-up Equity Shares of Rs. 10/-each. The new equity shares so allotted, shall rank pari passu with the existing equity shares of the Company," said BCL Industries in a stock exchange filing.

The paid-up share capital of the company is increased to Rs 25,35,70,000/- as a result of this allocation, consisting of 2,53,57,000 equity shares of Rs 10 apiece.

After the date of allocation, the warrants' tenure is restricted to 18 months. A right to subscribe for one equity share is included in each warrant, and this right may be exercised in one or more tranches between the date of warrant allocation and the expiration of 18 months from that date. At the time of subscription and allotment of each warrant, an amount equal to 25% of the warrant issue price was received; the remaining 75% has to be paid by the warrant holders.

BCL Industries made a 52-week-high of Rs 588.00 on (18/09/2023) and a 52-week-low of Rs 276.15 on (15/11/2022). The stock price went up from Rs 100.55 to the current market price during the past five years, resulting in a multibagger return of 376%. The stock price soared from Rs 57.25 to the current market price during the past three years, resulting in a multibagger return of 860%. The share price has gone up 66% during the past year, and YTD, the stock is up 68.43% so far in 2023.