BCL Industries' board approves allotment of 54.66 lakh convertible warrants on preferential basis

BCL Industries has approved the allotment of 54,66,334 warrants bearing a nominal value of Rs 10 each on a preferential basis to promoters, promoter group and non-promoters, the company said in a regulatory filing.

In its meeting held on Saturday, the board of the company "considered and approved the allotment of fully convertible warrants at an issue price of Rs 360 per warrant, on preferential basis, after receipt of subscription amount being 25 per cent of the issue price from the allottees."

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

A convertible warrant empowers investors with the right to purchase a certain amount of the company's shares at a later date. 

The company's board also approved repayment of existing debt amounting Rs 30 crore, the filing said. The company has also confirmed the appointment of a SEBI registered external credit rating agency for the purpose of monitoring the utilization of the proceeds.

BCL Industries is a leading edible oil and distilleries company. It is the only company in India and the South Asian region to have a forward and backward integrated distillery ethanol plant.

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