BCL Industries has approved the issuance of convertible bonds to raise funds. The agro-based edible oil company through an exchange filing said that its board has approved over 55 lakh fully convertible bonds to promoter, non-promoter and public categories on a preferential basis.
The bonds will be issued at Rs 360 having a face value of Rs 10 each. The bonds carry a right exercisable by the holders.
According to the company, the filing said, it aims to raise Rs 201,00,00,240 through convertible bonds. A convertible bond is nothing but a fixed-income corporate debt security. It can be converted into a predetermined number of common stock.
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BCL Industries said that the binds may get listed on the exchanges in terms of Chapter V of SEBI (ICDR) Regulations.
The board has also decided to call the extra-ordinary general meeting on February 9 to seek members' approval and constitute a fund raising committee for taking necessary decisions.
Besides, the company will also appoint a SEBI registered external credit rating agency that will monitor the use of proceeds. The company also announced increasing the authorized share capital from Rs 25 crore to Rs 35 crore.
Meanwhile, BCL Industries shares traded positive at Rs 412 apiece amid broad-based selling in the benchmark indices -- Sensex and Nifty50.
