Penny Stock Under Rs 2: Company Approves Bonus Equity Share of 1:1; Aims to Turnaround Business Operations Expediting Expansion Plans & Debt Reduction
The company has a market cap of Rs 294 crore while the order book stands at Rs 260 crore.
On Monday, shares of KBC Global Ltd gained 1.80 per cent to Rs 1.13 per share from its previous closing of Rs 1.11 per share. The stock is up by 4.63 per cent from its 52-week low of Rs 1.08 per share and it is trading at 0.21 times its book value. The company has a market cap of Rs 294 crore while the order book stands at Rs 260 crore.
The board of directors of Nashik-based, KBC Global Ltd, BSE – 541161 engaged in the business of construction and real estate development in the meeting held on 15 February has 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) subject to approval of the shareholders of the company. The company aims to turn around business operations with plans to expedite expansion plans and debt reduction in the near future. The Board of Directors also approved the proposal to increase authorized 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.
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 utilized for the Bonus Issue, with shares credited within 60 days of Board approval. The company’s share capital as of date stands at Rs. 261.43 crore consisting of the equal number of equity shares of Re 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).
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.
Recently, Patanjali Food and Herbal Park, Falcone Peak Fund (CEIC) Ltd among other investors to invest upto Rs 99.50 crore through convertible preferential warrants issued in the company. The board of directors of the company in the meeting held on October 16, 2024, has 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 total Rs. 99.50 crore. Each warrant shall be convertible into one equity share of the face value of Re 1 each fully paid up. The proceeds of the equity issue will be utilised for the repayment of debt. Extra Ordinary General Meeting of the company is scheduled for 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, the 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.
Warrants issue is under the provisions of SEBI (Issue of Capital and Disclosures Requirements) Regulations, 2018 and warrant shall be converted into equity shares of the company within 18 months of the allotment with receipt of the remaining amount. The board of directors also appointed Ms. Muna Makki as an Executive Director of the Company subject to the approval of Members.
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 the construction and development of residential building complexes, low-cost housing and Commercial space in SEZ with an estimated cost of USD 12.5 million USD. The project is expected to commence in 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 is 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 meter.
Established in 2007, the company specializes 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.
On 21st September 2024, the company successfully fulfilled its payment obligation to Capri Global Capital Ltd and fully regularized 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.
In 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.