This Multibagger Small Cap Company Announces 1:1 Bonus Issue, Rs 260 Crore Order Book, Rs 99.50 Crore Fundraise, and International Infra Contracts

The order book of the company stands at over Rs 260 crore and the market capitalisation stands at Rs 266 crore.

KBC Global Ltd, engaged in the business of construction and real estate development, fixed April 4 as the record date to determine eligible shareholders entitled to receive bonus shares in a meeting held on March 28. The company on February 15 approved a bonus issue in the ratio of 1:1 (one bonus equity share for every one fully paid equity share of Rs. 1 each), which was later approved in the extraordinary general meeting on March 27.

The company aims to turn around business operations with plans to expedite expansion plans and debt reduction in the near future. The order book of the company stands at over Rs. 260 crore. The market capitalisation stands at Rs. 266 crore. The Board of Directors in the extraordinary general meeting held on March 22, 2025, approved a proposal to increase authorised capital and proposed renaming KBC Global Ltd to Dharan Infra-EPC Ltd or another name approved by the ROC. The company also approved the appointment of Mr Naresh Karda as Chairperson of KBC Infrastructure Ltd, a UK-based wholly owned subsidiary.

In the EGM held on March 22, the company also appointed Mr Narendra Singh Kharayat and Ms Anoushka Lutchmee Nunkoo as Non-Executive Independent Directors of the company. Mrs Lea Colcol Bonaga and Mrs Nabila Hadia Hawail are appointed as Directors of the Company, who have been appointed as Additional Executive Directors.
Senior company officials stated, 'The bonus share issue, alongside the strategic capital restructuring and upcoming rebranding, reflects our commitment to long-term value creation. We are restructuring our operations, revitalising our balance sheet, and aligning our brand to a more aggressive infra growth narrative.'

The Bonus Equity Shares will be issued from the company's permissible reserves, including Free Reserves, Securities Premium Account, and Capital Redemption Reserve, as of March 31, 2024. A total of Rs. 261.43 crore will be utilised for the Bonus Issue, with shares credited within 60 days of Board approval. The company’s share capital as on date stands at Rs. 261.43 crore, consisting of an equal number of equity shares of Rs. 1 each, which will increase to Rs. 522.87 crore post the bonus issue. The company will announce the 'Record Date' for Bonus Share eligibility in due course, as per SEBI Regulation 30 (2015).

Established in 2007, the company specialises in developing and selling residential and residential-cum-office projects in Nashik, India. Key projects include Hari Gokuldham, Hari Nakshtra-II Eastext Township, and more. The company focuses on residential, commercial, and contractual projects and has announced strategic expansion plans domestically and internationally.
Recently, Patanjali Food and Herbal Park, Falcone Peak Fund (CEIC) Ltd, among other investors, invested up to Rs. 99.50 crore through convertible preferential warrants issue in the company.

The Board of Directors of the company in the meeting held on October 16, 2024, approved to issue a total of 45.23 crore warrants on a preferential basis to non-promoters at Rs. 2.20 per warrant (including a premium of Rs. 1.20 per warrant) aggregating a total of Rs. 99.50 crore. Each warrant shall be convertible into one equity share of face value of Rs. 1 each fully paid up. The proceeds of the equity issue will be utilised for the repayment of debt. An Extraordinary General Meeting of the company is scheduled on November 15, 2024, for the same.

Out of the total issue of 45.23 crore warrants to be issued, Falcone Peak Fund (CEIC) Ltd is proposed to allot 26 crore warrants, Patanjali Parivahan Pvt Ltd and Patanjali Food and Herbal Park to be allotted 4.55 crore warrants and Foresight Holding Pvt Ltd is expected to be allotted 2.28 crore warrants. Post issue of the warrants, shareholding of Falcone Peak Fund (CEIC) Ltd in KBC

Global Ltd is expected to be 8.48 per cent, Patanjali companies around 1.48 per cent and Foresight Holding Pvt Ltd around 1.04 per cent, respectively.

Recently, KBC International Ltd, a Ghana drop-down subsidiary of KBC Infrastructure Ltd, UK (a wholly owned subsidiary of KBC Global), has entered into a Memorandum of Understanding with Liberia Special Economic Zone Authority for construction and development of residential building complexes, low-cost housing and commercial space in SEZ with an estimated cost of USD 12.5 million. The project is expected to commence from Q2 2025 and is expected to be completed within three calendar years. Liberia Special Economic Zone Authority is an entity established by the Government of Liberia under the Special Economic Zone Act 2017. This is the second prestigious international order received by KBC Global.

In June 2024, KBC Global Ltd, through its subsidiary Karda International Infrastructure Ltd, secured a USD 20 million civil engineering subcontract in the soft infrastructure segment from CRJE (East Africa) Ltd. CRJE, part of the China Railway Construction Group, has a strong legacy of building railways and five-star hotels across Africa. This contract marks KBC Global’s entry into Africa’s infrastructure development, positioning the company as a key player in the region’s growth.

The company has recently commenced a new project in Deolali, Nashik. The project, located at Survey No. 87/2/2B, Plot No. 4, on Jai Bhavani Road, has a proposed area of 31,998 sq ft with six commercial and twenty-two residential units on the plot area of 761.32 sq metres.

On September 21, 2024, the company successfully fulfilled its payment obligation to Capri Global Capital Ltd and fully regularised the default on September 19, 2024. Furthermore, the company also entered into a favourable Memorandum of Understanding (MOU) with Capri Global Capital Limited, securing a waiver of non-financial penal interest. As of today, the outstanding balance with Capri Global Capital Ltd stands at Rs. 13.50 crore. This agreement underscores the strong relationship and trust between both parties, positioning the company for continued growth and stability. This will add more pace to the construction activities of projects Hari Vasant, Hari Aakruti Phase II of the company.

During the month of September 2024, the company successfully handed over possession of 13 units from its projects - Hari Kunj Mayflower – 5, Hari Krishna Phase IV – 4,  Hari Vishwa – 1 and Hari Sanskruti Phase II – 4. Since April 2024, the company has handed over possession of a total of 135+ residential and commercial units in Nashik, Maharashtra. This includes 91 units from the Hari Kunj Mayflower project (MAHARERA Reg no: P51600020249) and 28 units from the Hari Krishna Phase IV project, with the rest from other ongoing projects.

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