BCL Industries share jump 11% to hit new highs; company converts warrants into shares

Shares of BCL Industries Ltd continued to extend their gains on Friday as the stock rose another 11 per cent to hit new 52-week highs for the day. The stock has been on the radar of investors amid multiple order wins and a ban on the use of sugar, sugarcane juice or syrup for ethanol production.

BCL Industries converted the warrants into equity shares of select investors on Thursday, it informed the exchanges through an exchange filing on Monday. However, not all warrant holders have converted their warrants into equity shares.

The warrants were issued at a price of Rs 360 apiece, wherein subscribers to the offer paid 25 per cent of the issue price for the allotment on a preferential basis. However, shares of the company were split in a 1:10 ratio on October 27, which allowed warrant-holders to get 10 equity shares for each warrant held, at an effective price of Rs 36 per share.

Elara India Opportunities Fund and Vespera Fund converted 9,50,000 warrants and 65,000 warrants into 95,00,000 equity shares and 6,50,000 equity shares, respectively after a payment of remaining balance. The former one paid Rs 26.54 crore, while the latter had to pay Rs 1.75 crore for the conversion.

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Following the announcement, shares of BCL Industries surged more than 11 per cent to Rs 79.14, its new 52-week high, commanding a total market capitalization of close to Rs 2,000 crore. The stock has surged 36 per cent in the current week, while the stock is up 180 per cent from its 52-week low at Rs 28.60.

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Consequent to this conversion of warrants/allotment of equity shares, 28,31,334 warrants remain pending for conversion and these warrant holders are entitled to get their warrants converted into equity shares of the company by paying remaining 75 per cent, or Rs 27 per warrant (adjusted on split-basis) within 18 months from the date of warrant allotment.

Earlier this week, BCL Industries and its subsidiary Svaksha Distillery have cumulatively bagged orders worth Rs 567.4 crore for the year starting November 1, 2023 to October 31, 2024. Both the entities will aggregately supply 82,902 kilolitres (KL) of ethanol during the given year.

Also, the Centre on Thursday banned the use of ‘sugarcane juice and sugar syrup’ for ethanol production in the 2023-24 supply year that started on November 1, 2023. This bodes well for BCL Industries as it is a grain based ethanol producer in the country.

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