1 week ago
NHC Foods Hits Upper Circuit After Warrant Issue Approval
NHC Foods is a company whose share price has been rising quickly.
On 26 August, its share reached the highest allowed daily price increase on the BSE.
The company’s board approved plans to increase the amount of share capital it is allowed to issue.
It also proposed selling up to 25.60 crore warrants to investors who are not company promoters.
These warrants could later become shares, but shareholders must approve the plan first.
The company also converted part of some foreign-currency bonds into shares.
This increased its paid-up share capital to about ₹94.38 crore.
NHC Foods also appointed Pradeep Agarwal as its chief financial officer from 1 September.
NHC Foods rose 5% to its upper circuit of ₹2.05 on the BSE on 26 August.
The stock has gained for 15 consecutive sessions and nearly doubled during that period.
The board approved raising authorised share capital from ₹100 crore to ₹2,000 crore.
It approved up to 25.60 crore convertible warrants for non-promoters at ₹2.10 each, subject to shareholder approval.
The company also allotted 18,18,79,020 shares after partial conversion of FCCBs and appointed Pradeep Agarwal as CFO from 1 September.
- Who
- NHC Foods, its board, non-promoter investors, Emerging Market Opportunities Ltd., and newly appointed CFO Pradeep Agarwal.
- What
- The board approved a capital increase, a preferential issue of up to 25.60 crore convertible warrants, a partial FCCB conversion-related share allotment, and a CFO appointment.
- Where
- The stock traded on the BSE; the remaining FCCBs are listed at Afrinex Exchange.
- When
- The board approvals were announced on 25 August; the stock hit its upper circuit on 26 August, and the CFO appointment takes effect on 1 September.
- Why
- The proposed warrant issue would raise ₹53.76 crore, while the capital increase would support the company’s expanded authorised share capital.
Key facts
- Upper-circuit price
- ₹2.05 on the BSE
- Recent price streak
- 15 consecutive sessions of gains
- Authorised share capital
- Proposed increase from ₹100 crore to ₹2,000 crore
- Proposed warrants
- Up to 25.60 crore convertible warrants
- Warrant issue value
- ₹53.76 crore at an issue price of ₹2.10 per warrant
- Paid-up share capital
- Increased to ₹94,38,06,060 after the FCCB-related allotment
- Remaining FCCBs
- 240 FCCBs with a principal amount of $1,00,000 each remain outstanding
Sources
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