52-week high alert: This small-cap company allocates 1,10,000 warrants to Ashish Kacholia; do you own it?

The stock has given a return of 61.44 per cent in the last year and remarkable multibagger returns of  4547 per cent over past 3 years.

In a strategic financial move aimed at fortifying its economic position and building investor confidence, Xpro India Ltd, a key player in polymer processing specializing in Coextruded Plastic Films and specialty films, has recently given the nod for a preferential issue of warrants.

This move entails offering selected investors, including the reputable Ashish Kacholia, the opportunity to purchase shares at a fixed price. Pending approval from shareholders and regulatory authorities, this initiative represents a significant step for Xpro as it endeavours to attract crucial investments, thereby enhancing its overall financial standing in the market.

Understanding the Preferential Allotment

The company plans to issue up to 14,35,750 warrants, each carrying the right to subscribe to one equity share of the company at an exercise price of Rs 975 per share. Investors will have the flexibility to pay 35 per cent of the issue price upon application, with the remaining 65 per cent payable within 18 months from the date of warrant allotment. Additionally, a fully paid-up warrant entitles conversion into one equity share at a premium of Rs 965 per share.

Key Investors and Allotment Details

Xpro Ltd has strategically identified key investors for this preferential allotment, and the table below outlines the proposed allotment details along with the pre- and post-allotment shareholding percentages:

Additionally, The Board has approved the raising of capital through a QIP for an aggregate amount not exceeding Rs. 150 Crores by issuing equity shares of face value Rs. 10 each. The QIP is subject to shareholder and regulatory approvals.

The Board has also approved the incorporation of a wholly-owned subsidiary in the UAE engaged in the business of Dielectric Films.

Xpro Ltd's move to allot warrants to ace investors, notably Ashish Kacholia, underscores the company's commitment to growth and financial stability. By offering these warrants at an exercise price of Rs 975 per share, the company raises essential capital to fuel its growth initiatives. The infusion of funds through this preferential allotment allows Xpro to strengthen its financial position, pursue strategic business expansion, and enhance shareholder value. The structure of the issue, with a 35 per cent upfront payment and the remaining 65 per cent at the warrant holder's option, provides flexibility.

The stock has given a return of 61.44 per cent in the last year and remarkable multibagger returns of  4547 per cent over past 3 years. Investors should keep an eye on this Small cap stock.

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