Multibagger penny stock at Rs 50 & FIIs bought 6 per cent stake: Board allocates 1,18,13,340 equity shares to promoters on conversion of warrants!

The stock gave multibagger returns of 450 per cent in 5 years and a whopping 1,700 per cent in a decade.

Today, shares of BCL Industries Ltd gained 2.36 per cent to an intraday high of Rs 49.36 per share from its previous closing of Rs 48.22. The stock’s 52-week high is Rs 86.25 while its 52-week low is Rs 43.13.

BCL Industries Limited is one of India’s largest agro-processing manufacturing companies with diverse businesses and vertical integrations. Established in 1976, BCL Industries Limited is engaged in edible oils, rice milling, grain-based distilleries and real estate. It is present in Punjab and West Bengal. BCL Industries Ltd Limited is a part of the Mittal group with a market cap of Rs 1,494 crore.

The company's board of directors approved the allotment of 1,18,13,340 new equity shares at Rs 36 per share (including a premium of Rs 35). This allotment follows the conversion of previously issued warrants. The original warrants were issued at Rs. 360 per share, but after a stock split, the conversion price was adjusted to Rs. 270 per share (75 per cent of the original price). Warrant holders who exercised their conversion rights brought in a total of Rs. 31.89 crore. There are still 12 lakh warrants outstanding, and holders can convert them within 18 months by paying the remaining 75 per cent (Rs 270 per warrant). As a result of this conversion, the company's issued, subscribed, and paid-up equity share capital has increased to Rs 284.16 crore, consisting of 28,41,63,340 fully paid-up shares of Re 1 each. It is important to note that this announcement includes the names of the promoters who were allotted shares: Mr Rajinder Mittal, Mrs Sunita Mittal, Mr Kushal Mittal, and Mrs Sara Garg.

Also Read: Rs 1,783 crore order book: Multibagger solar EPC company gets trading approval for warrants converted to equity shares from BSE & NSE to promoters & non-promoters!

According to Quarterly Results, the net sales increased by 34.3 per cent to Rs 613.65 crore in Q4FY234 compared to Rs 456.96 crore in Q4FY23. The company reported a net profit of Rs 23.71 crore in Q4FY24 compared to net sales of Rs 24.60 crore in Q4FY23. In its annual results, the net sales increased by 20.1 per cent to Rs 2,200.62 crore in FY24 compared to Rs 1,819.92 crore in FY23 while the net profit increased by 49 per cent to Rs 95.92 crore in FY23 compared to Rs 64.36 crore in FY23.

The company's expansion is paying off. The Bathinda unit's new plant doubled its ethanol production capacity, and a new plant in Kharagpur along with a subsidiary's expansion boosted total capacity to 700 KLPD. This strong growth is meeting high demand, with a full order book from Oil Marketing Companies until November 2024.

An ace investor, Sangeetha S own a 1.23 per cent stake in the company as of March 2024 while Foreign Institutional Investors (FIIs) bought a 6 per cent stake in the company and increased their stake to 6.41 per cent in FY24 compared to 0.41. per cent in March 2023. According to shareholding patterns as of March 2024, the promoters own 56.08 per cent, FIIs own 6.41 per cent and the public owns 37.51 per cent stake in the company.

The stock gave multibagger returns of 450 per cent in 5 years and a whopping 1,700 per cent in a decade. Investors should keep an eye on this Small-Cap stock.  

Disclaimer: The article is for informational purposes only and not investment advice.