1:1 Bonus Share; Record Date-March 28, 2025: Penny Stock Under Rs 2 To Keep Under Radar

The Board fixed the record date as March 28, 2025.

Nashik-based KBC Global Ltd (BSE: 541161), a construction and real estate development company, has announced a 1:1 bonus share issue, subject to shareholder approval. This means one bonus equity share of Re 1 will be issued for every existing fully paid-up share. The company's board, in a meeting on February 15th, approved the bonus issue, aiming to utilize Rs. 261.43 crore from permissible reserves to double the share capital from Rs. 261.43 crore to Rs. 522.87 crore. The Board fixed the record date as March 28, 2025.

The board also approved a proposal to increase the authorized capital and rename the company to Dharan Infra-EPC Ltd or another name approved by the Registrar of Companies (ROC). Furthermore, Mr. Naresh Karda has been appointed as chairperson of KBC Infrastructure Ltd, the company's UK-based wholly-owned subsidiary.  

KBC Global is focusing on turning around its business operations through expedited expansion and debt reduction. The company's market capitalization is Rs. 294 crore, with an order book of Rs. 260 crore.  

Strategic Investments and Financial Restructuring

The company recently secured significant investments through convertible preferential warrants. Patanjali Food and Herbal Park, Falcone Peak Fund (CEIC) Ltd, and other investors will invest up to Rs. 99.50 crore. The board approved the issuance of 45.23 crore warrants at Rs. 2.20 each, with an Extraordinary General Meeting scheduled for November 15, 2024, to finalize the issuance. Falcone Peak Fund (CEIC) Ltd is expected to receive 26 crore warrants, while Patanjali Parivahan Pvt Ltd and Patanjali Food and Herbal Park will receive 4.55 crore warrants, and Foresight Holding Pvt Ltd will receive 2.28 crore warrants. Post-issuance, Falcone Peak Fund (CEIC) Ltd.'s shareholding is expected to be 8.48%, Patanjali companies' around 1.48%, and Foresight Holding Pvt Ltd's around 1.04%. These warrants, issued under SEBI regulations, can be converted into equity shares within 18 months. The proceeds will be used for debt repayment. Ms. Muna Makki has been appointed as an Executive Director, subject to member approval.  

International Expansion and Project Developments

KBC International Ltd, a Ghana subsidiary, has entered a Memorandum of Understanding (MOU) with the Liberia Special Economic Zone Authority for a USD 12.5 million construction project, expected to commence in Q2 2025 and be completed within three years. This marks the company's second major international order.  

In June 2024, Karda International Infrastructure Ltd, another subsidiary, secured a USD 20 million civil engineering subcontract from CRJE (East Africa) Ltd, a part of the China Railway Construction Group, for a soft infrastructure project in Africa.  

Domestically, KBC Global has commenced a new project in Deolali, Nashik, with 31,998 sq ft of development, including commercial and residential units.  

Financial Stability and Project Deliveries

The company has successfully regularized its default with Capri Global Capital Ltd., fulfilling its payment obligations and securing a waiver of non-financial penal interest. The outstanding balance with Capri Global Capital Ltd. is now Rs. 13.50 crore. This agreement is expected to accelerate the completion of projects like Hari Vasant and Hari Aakruti Phase II.  

In September 2024, KBC Global delivered possession of 13 units from its projects, contributing to over 135-unit handovers since April 2024, including significant deliveries from Hari Kunj Mayflower and Hari Krishna Phase IV.

KBC Global, established in 2007, specializes in residential and commercial projects, with key projects including Hari Gokuldham and Hari Nakshtra-II Eastext Township. The company is actively pursuing domestic and international expansion

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