BCL Industries, a leading edible oils and distilleries company, has approved the allotment of convertible warrants to promoters, promoter groups and categories of non-promoters. According to the 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, which will have a nominal value of Rs 10 on a preferential basis after paying 25 per cent of the issue price.
The filing said that the warrants entitles them 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 date of issue of the warrants .
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The filing said the warrants will be allotted on a preferential basis and will remain locked in for a specified period in accordance with the provisions of Chapter V of SEBI Regulations, 2018.
Convertible warrants are simply warrants that are convertible into equity shares after a specified period. Investors have the right to buy a certain amount of equity shares at a later date. In general, companies issue warrants as a way to raise money.
Meanwhile, the company has also approved the repayment of existing debt of Rs 30 crore and has also appointed a 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 South Asian region to have Forward and Backward Integrated Distillery Ethanol Plant. It is also engaged in the business of edible oils including refined oils.
Shares of BCL Industries closed at Rs 427, up 3 per cent on Friday.